This article investigates the role of sorting portfolios in evaluating asset-pricing models. With the rising number of empirical studies about asset-pricing models, the comparability of these effects suffers from (1) different aggregational levels of firm returns, (2) different models, i.e....

Using returns to scale as a conceptual foundation, we explore how R&D-related earnings performance and earnings variability depend upon firm size. We find that the positive association between the level of future earnings and R&D intensity increases with firm size, and that the positive...

Purpose: This analysis is the first to explore the overall roles of the offsetting attraction and distraction influences of earnings news in shaping the level of attention given to the equity market by market participants. Design/methodology/approach: We use multivariate regression approach and...