This paper examines the conceptual and empirical implications of the two major research paradigms that underlie earnings-returns studies -- the earnings persistence paradigm and Ohlson's book value model. Although the motivation for the persistence paradigm arises from the income-consumption...

This paper derives a theoretical relation between firm value and earnings persistence using a dividend-based valuation model. We show that the theoretical measure of ERC derived using this model is associated with both earnings persistence and the stochastic properties of dividends. More...

This paper examines a setting in which the derivatives strategies of two firms are known, but completely different. One firm aggressively hedges its risk using derivatives. The other firm uses a combination of operating and financial decisions, but no derivatives, to manage its risk. The...

This paper examines the informational role of short interest in the Nasdaq market. Using the population of monthly short interest data over the period of June 1988 through December 1994 we find that firms with high short interest experience significant negative abnormal returns ranging from...

Using a database provided by First Call Corporation, we examine the factors influencing whether a firm voluntarily accelerates the mandatory release of actual earnings via a quot;preannouncement.quot; We find that firms are more likely to preannounce earnings if the consensus of analysts'...

It is difficult to judge the intentions and performance of corporate managers when it comes to their risk management programs. To evaluate the effectiveness of a risk management program or to test financial theories of risk management, a firms underlying risk exposure must be known. This paper...

This paper examines the relationship between the level of short interest and stock returns in the Nasdaq market from June 1988 through December 1994. We find that heavily shorted firms experience significant negative abnormal returns ranging from - 0.76 to - 1.13 percent per month after...

This paper examines a setting in which the derivatives strategies of two firms are known, but completely different. One firm aggressively hedges its risk using derivatives. The other firm uses a combination of operating and financial decisions, but no derivatives, to manage its risk. The...