Earnings Quality Fails to Boost Stock Returns in Sri Lankan Companies
The article explores how the quality of a company's earnings affects its stock returns in the Colombo Stock Exchange. The researchers looked at different ways to measure earnings quality and found that neither traditional nor newer methods had a significant positive impact on stock returns for manufacturing companies in Sri Lanka. This suggests that investors may not trust the earnings information provided by these companies, possibly due to manipulation. The study also found that using different measures of earnings quality did not lead to inconsistent results.