In this paper we examine the industry specific determinants of the information content of sales incremental to earnings in explaining stock returns. We find that across industries the information content of sales beyond earnings in explaining contemporaneous return is significantly associated...

In this paper we examine the validity of using one-year-ahead cash flows prediction tests as a substitute for the value relevance test of earnings. We show theoretically that the R2 of the cash flows prediction regression is contaminated by the presence of (1) noise in the cash flows and (2)...