Accounting losses and earnings response coefficients: the impact of leverage and growth opportunities
Article Abstract:
Research was conducted on the effect of accounting losses on a firm's earnings and its stock returns or the earnings response coefficients (ERCs) given different growth opportunities and financial leverage. Results show that the impact of growth opportunities and financial leverage are important to each other when investigating ERCs. In conclusion, the effect of growth opportunities and financial leverage on ERCs are clearly observed especially when making separate analysis of losses and profits.
Publication Name: Journal of Business Finance and Accounting
Subject: Business
ISSN: 0306-686X
Year: 1997
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New evidence on predictability in world equity markets
Article Abstract:
Mean reversion is generally not a component of international stock price indexes. This was gleaned from an examination of whether indexes contain slowly mean-reverting components. Using regression-based tests and variance-ratio statistics, findings showed that only two out of 18 countries exhibited apparent mean reversion, reinforcing previous findings which showed that mean reversion is only apparent in long-horizon returns.
Publication Name: Journal of Business Finance and Accounting
Subject: Business
ISSN: 0306-686X
Year: 1995
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