Thomakos, Dimitrios D.; Papanastasopoulos, George; Wang, Tao - Rimini Centre for Economic Analysis (RCEA) - 2007
In this paper, we investigate the informational content of retained and distributed earnings for future profitability and market mispricing. We find that investors act as if the components of retained earnings (current operating accruals, non current operating accruals and retained cash flows)...