We explore the association between earnings and price for 400 IFRS adopting firms from eight countries (Australia, France, Germany, Hong Kong, Italy, Singapore, Sweden and the UK) in their annual reports for the years 2005, 2008, 2011 and 2013 (1,577 firm-years). We find no difference in the...

Our model, which is adapted from Feltham and Ohlson (1995) and Ohlson (1995) and extends Dechow and Dichev (2002), characterizes the information about future cash flows reflected in accruals. The model reveals that investors can extract from accruals information about next period's economic...