The empirical relationships between stock prices/returns, earnings and book value are informative about characteristics of accounting quality: conservatism in measurement of earnings and book value; earnings persistence; and earnings timeliness. In this paper we analyse the comparative accounting...

In this paper we address three issues in accounting-based equity valuation: (i) How are valuation parameters related to earnings persistence and accounting conservatism when earnings components aggregate, or add up, in valuation? (ii) What does aggregation of earnings components in valuation...

The predictability of abnormal returns based on information contained in past earnings announcements is a statistically and economically significant anomaly. Neither is it illusory, nor is it an artifact of the experimental design. It may be a result of market inefficiency. Our results cannot...

The predictability of abnormal returns based on information contained in past earnings announcements is an anomaly that is statistically and economically significant. Neither is it illusory, nor is it an artifact of the experimental design. It may be a result of market inefficiency. Our results...

This paper investigates the incremental information content of three accounting performance measures for U.K. firms: earnings, funds flow and cash flow. Based on tests of association using the most general specifications suggested by the recent literature incorporating time-varying parameters...

The predictability of abnormal returns based on information contained in past earnings announcements is an anomaly that is statistically and economically significant. It is neither illusory, nor an artifact of the experimental design. It may be a result of market inefficiency. Our results cannot...

This paper investigates the incremental information content of three accounting performance measures for U.K. firms: earnings, funds flow and cash flow. Based on tests of association using the most general specifications suggested by the recent literature incorporating time-varying parameters...

Prior research using the residual income valuation model and linear information models has generally found that estimates of firm value are negatively biased. We argue that this could result from the way in which accounting conservatism effects are reflected in such models. We build on the...

We study the consequences of mandatory adoption of International Financial Reporting Standards for earnings quality. On transitioning from local GAAP to IFRS, firms can make strategic balance sheet adjustments that in turn affect future reported earnings. We predict that earnings quality after...