This paper advances a hypothesis that the negative correlation between ex post real returns and unexpected inflation is induced by the negative correlation between ex post real returns and the uncertainty premium. The hypothesis is based on an uncertainty-adjusted present value model in which...

This study investigates the impact of mandatory International Financial Reporting Standards (IFRS) adoption on the value relevance of financial reports in 13 European countries by comparing the earnings--returns relation pre- and post-IFRS mandatory adoption in 2005. It shows that the financial...