haku: @indexterm COMPANY REPORTS / yhteensä: 363
viite: 12 / 363
| Tekijä: | Schleicher, T. Hussainey, K. Walker, M. |
| Otsikko: | Loss firms' annual report narratives and share price anticipation of earnings |
| Lehti: | British Accounting Review
2007 : JUN, VOL. 39:2, p. 153-171 |
| Asiasana: | company reports share prices earnings regression analysis disclosure |
| Kieli: | eng |
| Tiivistelmä: | This study extends prior research into the association between disclosure quality and share price anticipation of earnings by discriminating between firms that report profits and firms that report losses. The number of forward-looking earnings statements in annual report narratives is counted to measure the disclosure quality. The extent to which current share price movements anticipate future earnings changes is measured by regressing current stock returns on current and future earnings changes. The coefficients on the future earnings change variables are used as a measure of share price anticipation of earnings. The regression results reveal that the association between annual report narratives and share price anticipation of earnings is not the same for profit and loss firms. For loss firms it is found that the ability of stock returns to anticipate next period's earnings change is significantly greater when the firm provides a large number of earnings predictions in annual report narratives. Such observation is not made for profit firms. The results are overall consistent with annual report narratives being a particularly important source of information for loss-making firms. |
SCIMA