The annual growth in mean employee compensation plummeted from 2.6% in 1947–73 to 0.4% in 1973–2003. Using both time-series regression and pooled, cross-section, time-series regression analysis for 44 industries over the period 1953–2000, we find that earnings growth is positively related to overall productivity growth, capital investment excluding computers, and the unionization rate. We find ...

Efficient market hypothesis predicts that capital markets are beset with cer-tain biases which result from wrong estimation, and negatively influence shareholders’ expectations for higher returns, which in turn affects invest-ment efficiency, financial constraints and corporate performance efficacy in competitive markets, and eventually mitigates firm value. The present study aims at examining ...

A large literature has measured the regression to the mean in earnings and occupational status. One conclusion of this literature is that earnings regress to the mean more rapidly than status. This paper provides a theoretical model for intergenerational mobility in both status and earnings and examines its implications empirically. We consider the theoretical implications of parental investmen...

The aim of this study is to evaluate the impact of cash dividend components on corporates earnings persistence and return on stock. The population of study consists of 109 companies listed in Tehran Stock Exchange from 2011 to 2016. Data was analyzed using regression model. According to results, the cash component of earnings is more persistent than accruals and it can be used to predict future...

If a small firm effect exists, one would expect to see a trend towards proportionately greater investment in small firms. Among the most sensitive investors would be institutional investors who are constantly seeking to maximize their portfolio's rankings. This study examines changes in institutional investments on the basis of firm size, price/earnings ratios and Timeliness rankings. Instituti...

This study investigates the real effects of management communication, specifically forecasts or earnings guidance, on investment. Managers can signal strength their projects through accuracy in guidance. leads less accurate managers to distort investments; equilibrium investment strategy involves over-investment when exceed forecast and under-investment fall short. Moreover, we find that are pe...

NVESTORS, world over, are currently demanding more shareholder value than just high returns. Maximising shareholders value has always been the ultimate aim of every company. Investors are very keen in assessing the corporate financial performance that correlate with shareholders wealth particularly the market price of a share. Traditional performance measures like return on investment, earnings...

In recent years the human capital earnings model has been widely used as a framework for examining the determination of earnings. A specification of the human capital earnings function developed by Chiswick and Mincer has been employed to examine earnings determination across individuals [Mincer, 1974b], states [Chiswick, 1974], metropolitan areas [Hirsch, 1978], occupations [Rahm, 1971], and o...

We analyze the ability of earnings and non-earnings performance metrics to explain stock returns for industries where we identify, ex ante, an allegedly preferred (for valuation purposes) performance metric. We identify three industries each where earnings before interest, taxes, depreciation and amortization (EBITDA) and cash from operations are preferred, and three industries where specific n...