search query: @journal_id 56 / total: 1032
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Author: | Donnelly, R. Walker, M. |
Title: | Share price anticipation of earnings and the effect of earnings persistence and firm size |
Journal: | Journal of Business Finance and Accounting
1995 : JAN, VOL. 22:1, p. 5-18 |
Index terms: | EARNINGS COMPANIES PRICES |
Language: | eng |
Abstract: | It is well known that the market has information relevant for the prediction of earnings in advance of the financial year to which they pertain. This information is not reflected in models which relate contemporaneous security returns to earnings. Thus earnings response coefficients estimated using such models will be downward biased. This paper, extending the work of Kothari, shows theoretically how this bias can be mitigated by including leading prices in the price-earnings model. |
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