Economics, Econometrics and Finance
8 years ago

Earnings response linked to interest rates and risk, impacting stock prices.

Journal of Accounting and Economics
An analysis of intertemporal and cross-sectional determinants of earnings response coefficients
Daniel W. Collins, S.P. Kothari

Paper Summary

Related papers

Economics, Econometrics and Finance
a year ago

Earnings reports timing affects market reactions, leading to potential investor losses.

Earnings Management
Asset Pricing
Corporate Governance
2 views
Business, Management and Accounting
4 years ago

High growth firms show strong correlation between earnings and returns, study finds.

Earnings Management
Value-based Management
Corporate Governance
2 views
Business, Management and Accounting
8 years ago

Investors Unfazed by Earnings Quality in Tehran Stock Exchange Reactions.

Earnings Management
Asset Pricing
Value-based Management
2 views

The earnings response coefficient, which shows how stock prices change when earnings change unexpectedly, is influenced by interest rates, earnings riskiness, growth, and persistence. It also varies depending on how long you hold onto the stock. These factors help explain why smaller companies have different earnings response coefficients compared to larger ones. By considering these factors, we can better understand the relationship between earnings and stock returns.