The article explores how accounting earnings affect stock prices using data from firms on the Stockholm Stock Exchange. The researchers found that there is a drift in stock prices after quarterly earnings announcements, especially for longer holding periods. They also discovered that bad earnings news does not lead to a significant downward drift in stock prices. This suggests that investors may be demanding compensation for a risk factor not considered in the study. Additionally, the study shows that stock prices react differently to earnings signals based on GAAP earnings versus core earnings, with GAAP earnings perceived as more uncertain. Finally, the researchers found that Swedish investors expect higher returns from firms with poor earnings quality, indicating a link between information risk and expected returns.