Generally, stock prices reflect future expectations of earnings, whereas accounting data reflect past performance. This paper attempts to discover the relationship between accounting data and market price returns of the companies listed on the Prague Stock Exchange (PSE). The Prague Stock...

This paper is motivated by the links that continue to be forged between security pricing and accounting, building on recent findings that firms tend to be asymmetrically conservative in the timeliness of earnings recognition. The evidence is that firms in the European Union tend to recognise...