Business, Management and Accounting
8 years ago

Earnings Acceleration: The Key to Predicting Future Financial Success

Does Earnings Acceleration Convey Information
Ying Cao, Linda A. Myers, Theodore Sougiannis

Paper Summary

The article explores whether changes in earnings growth (earnings acceleration) provide valuable information. The researchers analyzed a large group of U.S. companies and found that earnings acceleration is linked to stock returns, predicts future earnings, and influences financial analysts' forecasts. This suggests that earnings acceleration offers additional insights beyond just earnings levels and changes, enhancing the understanding of a company's financial performance.

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