Recent studies indicate that both current Ramp;D investment levels and current or recent changes in Ramp;D investment are positively associated with subsequent excess (risk-adjusted) stock returns. The tentative explanation offered for these results is that shares of Ramp;D-intensive firms are...

Numerous studies have used the proportion of anomalous returns earned during earnings announcement intervals as evidence to distinguish between risk and mispricing explanations for those returns. This approach implicitly assumes that returns expected as compensation for risk-bearing are earned...

Investment professionals often suggest that accounting earnings is a more useful indicator of share value if adjusted by substituting current capital expenditures for reported depreciation. We investigate the usefulness of this alternative depreciation measure by comparing the ability of...

This study provides evidence on the potential usefulness of depreciation accounting to investors. We first document the extent to which depreciation numbers reported in accordance with current accounting standards improve accounting earnings as a source of information for valuing firms'...