This paper tests whether a negative stock market reaction associated with a management forecast of new term bad earnings is lessened by a concurrent management forecast of improved longer term earnings expectations. stock market reactions depend on the creditability of management forecasts of...

We evaluate the performance of financial analysts versus naïve models in making long-term earnings forecasts. Long-term earnings forecasts are generally defined as third-, fourth-, and fifth- year earnings forecasts. We find that for the fourth and fifth years, analysts' forecasts are no more...

We study the stock price and trading volume reactions to dividend initiations by high-tech firms relative to those by non-high tech firms. We find significant positive cumulative abnormal returns and abnormal trading volume for both high-tech and non-high tech firms surrounding dividend...

Fairfield and Yohn (2001) show that disaggregating change in return on assets into change in asset turnover and change in profit margin helps in predicting future profitability. For oil and gas firms, we disaggregate return on assets in the same manner and also use data envelopment analysis...