This study provides evidence that differential interpretations are an important stimulus for speculative trading. We measure differential interpretations using data on analysts' revisions of forecasts of <italic>annual</italic> earnings after the announcement of <italic>quarterly</italic> earnings that are components of those...

Outlines the key features of the Ohlson (1995) and Feltham and Ohlson (1995, 1996) models, which relate share values to current accounting numbers, and reviews research on their empirical application. Identifies some inconsistencies in results and directions for future research.