some of inherent limitations of accrual accounting make the actual earnings and accounting earnings different. so assessment of reported earnings quality has allocated extensive bulk of accounting studies to itself. the decrease information quality such as earnings quality increases information risk and also the investor’s risk. it’ll increase their expected return. since cost of equity is the ...

this paper compares the value relevance of book value and dividends versus book value and reported earnings. the main purpose of this study explains which of dividends, book value and earnings are more value relevance. thus, we have examined 98 firms of tehran stock exchange over a period 1377-1382. our methodology of examining the information content of various income statement and balance she...

based on valuation model of residual earnings, we cannot use earnings and losses of balance sheet items recorded in fair value for valuation purposes, for the balance sheet provides a perfect estimate of such items’ value. the purpose of this study is to examine whether net financial expenses are related to the market price of stocks in iran, because after initial recording of financial debts, ...

We examine a sample of Value Line’s timeliness rank upgrades that occur immediately following earnings announcements and find that the pre-event price momentum has significant incremental explanatory power for the post-event drift, after controlling for the level of earnings surprise. Therefore, the drift following Value Line’s timeliness upgrades of the stocks that it covers cannot be construe...

This paper examines the relation between the Seasoned Equity Offering (SEO) announcement effect and earnings timeliness. I predict that firms with greater earnings timeliness tend to have less information asymmetry between managers and investors, thus decreasing the magnitude of the price drop at the SEO announcement. As anticipated, I find that SEO negative announcement effect varies inversely...

This paper examines the value relevance of Local Accounting Standards (LAS) earnings and their voluntarily disclosed reconciliations to the International Accounting Standards (IAS). The empirical evidence is from Finland where, as discussed in our paper, restricted shares (available only to domestic investors) and unrestricted shares (available to both foreign and domestic investors) were liste...

This paper investigates the value-relevance of earnings and book value over 20 years of institutional transition in China, from 1991 to 2010, and explores the suitability of Fair Value Accounting (FVA) in the emerging capital market. In contrast to findings in the mature market, we find that the combined value-relevance of earnings and book value of listed firms in China has significantly incre...

................................................................................................................... 5 Chapter 1 – Introduction......................................................................................... 6 Chapter 2 – Literature Review ............................................................................. 16 1. Value Relevance.....................................

Behavioral Finance aims to explain empirical anomalies by introducing investor psychology as a determinant of asset pricing. This study provides strong evidence that anomalous stock price behavior following earnings announcements is due to a representativeness bias. It investigates current and past earnings surprises and subsequent market reaction for listed US companies over the period 1983-19...