Value Relevance of Earnings and Cash Flows from Operations : Effects of Earnings Permanence, Growth and Firm Size in Tunisian Stock Exchange
The purpose of this study is to examine the information content of accounting earnings and CFO to explain security returns in Tunisian Stock Exchange through the study of their response coefficients and the explanatory power of regression models in the period of 1997 - 2001 (an application of a New Accounting System of Companies). We hypothesis that (i) earnings (CFO) have an incremental information content beyond CFO (earnings) when the two variables are jointly used in return regression, (ii) the response of returns to CFO (earnings) increases (decreases) when earnings is transitory, (iii) security returns response to both earnings and (CFO) will be higher (lower) for high (low) growth firms and (iv) the security returns response to accounting earnings (CFO) are weaker (higher) for large (small) firms. We have introduced market-to-book ratio and market value of equity as additional variables in regression models and as proxies of growth and firm size. Results can not affirm that CFO plays a more important role in marketplace when earnings are transitory. Results in relation to earnings growth and firm size hypothesis show that CFO can join Market-to-Book ratio and market value of equity as proxy of risk
Year of publication: |
[2006]
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Authors: | BEN AYED, Mohamed Rafik |
Other Persons: | Abaoub, Ezzeddine (contributor) |
Publisher: |
[2006]: [S.l.] : SSRN |
Saved in:
freely available
Extent: | 1 Online-Ressource |
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Type of publication: | Book / Working Paper |
Notes: | Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments September 2006 erstellt |
Other identifiers: | 10.2139/ssrn.940419 [DOI] |
Source: | ECONIS - Online Catalogue of the ZBW |
Persistent link: https://www.econbiz.de/10012732708
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