Earnings are an important contributor to value, but a deal’s harm to the balance sheet can more than offset the value of increased earnings. Of course you want to see earnings per share increase, but not if your share price ultimately drops. If your company has access to cheap currency (a low cost of borrowing or a high stock price), it is easy to do an accretive deal. However, your cheap curre...

This paper examines the relation between smooth past earnings performance and the credibility of voluntary management earnings forecasts. Specifically, using strings of increasing earnings per share as our measure of past performance, we demonstrate that both analyst forecast revisions and stock price reactions around management earnings forecasts are more pronounced when the firm has posted a ...

The notion of intention share buyback by companies has been an increasingly popular subject study researchers in Malaysia and the developed economies. In particular, impact buybacks on boosting Earnings per Share (EPS) gained much attention. It is recognized that influence board decisions carrying out concentrated ownership a direct increase EPS. To establish actual effects EPS due to buybacks,...