Purpose – The purpose of this paper is to examine the informational content of retained and distributed earnings for future profitability and stock returns. Design/methodology/approach – The paper utilizes firm-level cross-sectional persistent regressions, Mishkin's econometric framework and...

Purpose – The purpose of this paper is to examine the informational content of retained and distributed earnings for future profitability and stock returns. Design/methodology/approach – The paper utilizes firm‐level cross‐sectional persistent regressions, Mishkin's econometric framework...