Controlling for lagged stock price responses in pricing regressions: an application to the pricing of cash flows and accruals
Article Abstract:
The differential pricing of the operating cash flow, and current accrual and non-current components of earnings in the securities market was re-examined in light of Sloan's (1996) findings indicating a lagged securities pricing adjustment to the differing implications of operating cash flows and accruals for future earnings. Consistent with earlier research, the present study found statistically insignificant differential valuations of operating cash flows and current accruals in the traditional model that links contemporary security returns to fluctuations in the earnings components. However, significant variances in valuation were found for operating cash flows, in relation to both current and noncurrent accruals, when the market's multiyear correction of mispricing and mean reversion in the earnings components in the past is considered.
Publication Name: Journal of Accounting Research
Subject: Business
ISSN: 0021-8456
Year: 1999
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Analysts' treatment of nonrecurring items in street earnings
Article Abstract:
The differential treatment of nonrecurring items in street earnings by analysts is discussed. The items that analysts decide to include in street earnings are valued more by the market than excluded items.
Publication Name: The Journal of Accounting and Economics
Subject: Business
ISSN: 0165-4101
Year: 2004
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Anticipatory income smoothing: a re-examination
Article Abstract:
Smoothing of antipated income is found by these authors to give incorrect results.
Publication Name: The Journal of Accounting and Economics
Subject: Business
ISSN: 0165-4101
Year: 2003
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