Relevant bibliographies by topics / Returns-earnings relationship

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  1. Journal articles
  2. Dissertations / Theses
  3. Books
  4. Book chapters

Academic literature on the topic 'Returns-earnings relationship'

Author: Grafiati
Published: 4 June 2021
Last updated: 4 February 2022

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Journal articles on the topic "Returns-earnings relationship"

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Brugni, Talles, Marcelo Cabus Klotzle, Antonio Carlos Figueiredo Pinto, Luiz Paulo Lopes Fávero, and Muhhamad Safdar Sial. "AGGREGATE EARNINGS AND RETURNS IN BRAZIL." Contabilidade Vista & Revista 32, no. 2 (July 29, 2021): 38–58. http://dx.doi.org/10.22561/cvr.v32i2.5942.

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We used the method employed in Kothari, Lewellen and Warner (2006) to show the relationship between aggregate earnings and market returns in Brazil in the period from 1995 to 2017. Considering the findings found by Kothari, Lewellen and Warnet (2006), our results indicate that the theory of Bernard and Thomas (1990) is more consistent with the US market than with the Brazilian market, signaling that the aggregate post-earnings announcement drift tends to be larger in markets with higher earnings persistence, like Brazil. Our findings also indicate that the relationship between aggregate returns and earnings in Brazil tends to be positive for the current period and the next two quarters, corroborating the Sadka and Sadka (2009) study. Considering that the predictability of earnings in the US market is higher than that in Brazil, our results also support the argument by He and Hu (2014) that the relationship between aggregate earnings and returns is linked to each country’s level of disclosure. However, new evidences reveal the influence of high interest rates on financial market results, suggesting that expectations of increased interest rates tend to reduce aggregate current returns in Brazil due to the possible migration of capital to lower risk, given the attractiveness of their returns in an environment of high inflation.
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Jin, Jong-Dae. "The relationship between accounting earnings and bond returns." Journal of Accounting and Public Policy 11, no. 3 (September 1992): 245–67. http://dx.doi.org/10.1016/0278-4254(92)90010-u.

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Alinezhad Sarokolaei, Mehdi, and Mehdi Tahmasbi. "Effect of Continuity and Smoothing of Profit on Corporate Profit- Stock Returns With Taking into Account the Heterogeneous Relationship of Profit - Efficiency on Companies Admitted to the Tehran Stock Exchange." Journal of Social Sciences Research, no. 54 (April 8, 2019): 982–89. http://dx.doi.org/10.32861/jssr.54.982.989.

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The purpose of this study was to investigate the effect of continuity and smoothing of profits on the relationship between corporate profits - Stock efficiency taking into account the heterogeneous profit relationship – efficiency on companies admitted to the Tehran Stock Exchange, generally, profit has always been a factor in investor decisions. In this regard, on the one hand, accounting and stock returns are linked together, on the other hand, the variable of earnings quality is related to accounting profit and stock returns. So it may be that the question arises what is the effect of the continuity and smoothing of profits on the relationship between accounting profit and stock returns? The present research seeks to answer this question; as a result, the main question of the research is presented as follows: What is the effect of continuity and smoothing of earnings on the relationship between earnings and stock returns for listed companies in Tehran Stock Exchange? To check this, the data of 123 companies listed in Tehran Stock Exchange during the years 2012-2016 were used; data was analyzed using the Logit method using Eviews10 software. Evidence and empirical findings have shown that; both profit continuity and profit smoothing criteria have significant effects on the heterogeneous relationship between current period earnings and stock returns.
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Alinezhad Sarokolaei, Mehdi, and Mehdi Tahmasbi. "Effect of Continuity and Smoothing of Profit on Corporate Profit- Stock Returns With Taking into Account the Heterogeneous Relationship of Profit - Efficiency on Companies Admitted to the Tehran Stock Exchange." Journal of Social Sciences Research, Special Issue 5 (December 15, 2018): 693–700. http://dx.doi.org/10.32861/jssr.spi5.693.700.

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The purpose of this study was to investigate the effect of continuity and smoothing of profits on the relationship between corporate profits - Stock efficiency taking into account the heterogeneous profit relationship – efficiency on companies admitted to the Tehran Stock Exchange, generally, profit has always been a factor in investor decisions. In this regard, on the one hand, accounting and stock returns are linked together, on the other hand, the variable of earnings quality is related to accounting profit and stock returns. So it may be that the question arises what is the effect of the continuity and smoothing of profits on the relationship between accounting profit and stock returns? The present research seeks to answer this question; as a result, the main question of the research is presented as follows: What is the effect of continuity and smoothing of earnings on the relationship between earnings and stock returns for listed companies in Tehran Stock Exchange? To check this, the data of 123 companies listed in Tehran Stock Exchange during the years 2012-2016 were used; data was analyzed using the Logit method using Eviews10 software. Evidence and empirical findings have shown that; both profit continuity and profit smoothing criteria have significant effects on the heterogeneous relationship between current period earnings and stock returns.
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Maditinos, Dimitrios I., Željko Šević, Jelena Stankevičienė, and Nikolaos Karakoltsidis. "EARNINGS RESPONSE COEFFICIENTS IN THE GREEK MARKET." Journal of Business Economics and Management 14, no. 2 (May 7, 2013): 414–31. http://dx.doi.org/10.3846/16111699.2012.758168.

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The paper explores the relationship between accounting information and stock returns of the companies listed on the Athens Stock Exchange (ASE) in the period 1998–2008. Publicly available financial data on the companies included in the ASE during 1998–2008 have been collected and processed. The data sample consists of 245 companies and varies from 2,166 to 1,441 firm-year observations. The research methodology has been based on the extension of the model introduced by Kothari and Sloan (1992) and investigates whether the level of earnings divided by price at the beginning of the stock return period is associated with returns in the context of ‘prices lead earnings’ using annual and quarterly data. Cross-sectional regression analysis points to a significant relationship between earnings and returns on measurement windows of one year and longer. Similar results have been found in the case of a cumulative model where earnings are aggregated up to four years; however, relationship in the short measurement window up to three quarters has resulted in low earnings response coefficients.
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Singh, Harjinder, and May Sze Khoo. "The impact of industry specialist audit firms on pricing of discretionary accruals and earnings management: Australian evidence." Corporate Ownership and Control 9, no. 2 (2012): 158–77. http://dx.doi.org/10.22495/cocv9i2c1art2.

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This paper examines the relationship between the capital market pricing of Australian publicly listed firms and earnings management (proxied by discretionary accruals) during a three-year pooled time-frame of 2008 to 2010. More importantly, the role of industry specialist audit firms on market returns and earnings management relationship is investigated. Main results indicate a significant negative relationship between firm returns and earnings management. However, there is no significance in the role of industry specialist audit firms on the firm returns and earnings management linkage. On the other hand, sensitivity tests indicate that industry specialist audit firms play in significant monitoring role for audit committees with less than fifty percent of their members classified as independent. One major contribution is for regulators (aiming to improve audit quality) to strengthen key firm-level corporate governance mechanisms. Specifically, by placing the consequences from this paper into perspective, there may be a greater likelihood of increased audit quality by altering audit committee’s structure, composition and authority levels.
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Vermeulen, Marise. "Fundamental factors influencing returns of shares listed on the Johannesburg Stock Exchange in South Africa." Journal of Economic and Financial Sciences 9, no. 2 (December 18, 2017): 426–35. http://dx.doi.org/10.4102/jef.v9i2.50.

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This study investigated the relationship between share returns and nine variables that had been proven to influence returns in previous research, using a multiple regression analysis. These variables are size, leverage, book-to-market ratio, earnings yield, dividend payout, earnings growth, return on equity, earnings per share and asset growth. The impact of some of the variables on share returns proved to be insignificant, and some collinearity was identified between some of the variables. However, three significant variables were identified and the final regression model included the book-to-market ratio, dividend payout and leverage as the explanatory variables.
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Öztürk, Hakkı. "The Relationship Between Earnings-to-Price, Current Ratio, Profit Margin and Return: An Empirical Analysis on Istanbul Stock Exchange." Accounting and Finance Research 7, no. 1 (November 20, 2017): 109. http://dx.doi.org/10.5430/afr.v7n1p109.

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This paper aims to investigate the relationship between current ratio, earnings to price, net profit margin and stock returns in İstanbul Stock Exchange over the period 2008-2016 by employing panel data analysis. Due to the existence of heteroskedasticity, cross sectional dependence and autocorrelation in sample data, two-way fixed effects model is estimated by robust estimators. Both Parks-Kmenta and Beck-Katz methods are conducted to check whether the results are consistent or not. According to Park-Kmenta estimation model, the results show that earnings to price and net profit margin are significant to explain stock returns in İstanbul Stock Exchange while current ratio is found insignificant. Moreover, the test based on Beck-Katz model produces the similar results. Earnings to price and net profit margin are strong determinants of stock returns in Istanbul Stock Exchange. Stocks with higher E/P ratios and profit margins generate higher returns for the next period.
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Paramita, Ratna Wijayanti Daniar. "THE WINDOW INFORMATION FOR INVESTOR ON ACCOUNTING PROFIT FORECASTING." JURNAL TERAPAN MANAJEMEN DAN BISNIS 3, no. 2 (October 30, 2017): 193. http://dx.doi.org/10.26737/jtmb.v3i2.315.

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<p>This study aimed to obtain empirical evidence, examine and explain he factors (leverage, persistence, growth, size and beta) that affect informativeness of earnings and its application in the financial statements at Manufacturing Companies listed in the Indonesia Stock Exchange 2013-2016. Research on the relationship between stock returns within come to determine the extent of their relationship are many who use earnings figures as the dependent variable regressed with stock returns as the independent variables are calculated by different methods. This method measures the magnitude of abnormal stock returns in response to the expected components of a company's reported earnings by using Earning Response Coefficient (ERC). Plan for data analysis in this study will be conducted using Path Analysis with analysis application of Moment Structure (AMOS).Conclusions of this study is significant influence of Leverage, Persistence profit and growth to Informativeness of earnings, either directly or through intervening variables Size and Beta.</p>
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Loh, Alfred L. C., and Terry S. Walter. "The Relationship Between Unsystematic Security Returns and Earnings Forecast Errors." Accounting & Finance 26, no. 1 (May 1986): 13–24. http://dx.doi.org/10.1111/j.1467-629x.1986.tb00071.x.

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Dissertations / Theses on the topic "Returns-earnings relationship"

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Hällefors, Hans. "On the Relationship Between Accounting Earnings and Stock Returns : Model Development and Empirical Tests Based on Swedish Data." Licentiate thesis, Handelshögskolan i Stockholm, Institutionen för Redovisning och finansiering, 2013. http://urn.kb.se/resolve?urn=urn:nbn:se:hhs:diva-2086.

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Correia, Rosa Cláudio. "Returns to Education in Germany : An updated assessment of the earnings-education relationship." Thesis, Jönköping University, IHH, Nationalekonomi, 2021. http://urn.kb.se/resolve?urn=urn:nbn:se:hj:diva-53041.

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This work aims at answering the following questions: what is the gain in future earnings from spending one more year in schooling? Do all years in education increase one’s wages by the same amount? Will obtaining a diploma positively affect one’s future wage? By running a Mincer equation enhanced with factors such as sector of employment or gender and using the educational attainment of the parents as an instrumental variable on the 2017 wave of the German Socio-economic Panel, I am able to estimate that in Germany, returns to education are around 10%. To circumvent endogeneity and omitted variable bias, 2SLS is favoured against OLS. Despite this, the results are similar to previous literature which employed a simple OLS on a Mincer equation though it is also found that OLS underestimates returns to education by 1.2%. Returns to the school years themselves are estimated to be more or less stable and fluctuate between 6 and 12% with the exception of the 9th year of schooling which is more impactful at 24% and the 14th at zero. Finally, due to the complex nature of the German educational system, it was not possible to ascertain the existence of diploma effects.
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Kornik, David. "The relationship between annual earnings and share returns on the JSE Securities Exchange." Master's thesis, University of Cape Town, 2005. http://hdl.handle.net/11427/5626.

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Includes bibliographical references (leaves 91-99).
This research study investigates whether the relationship between accounting earnings and share returns observed predominantly in New York Stock Exchange (“NYSE”) studies also holds on the modern-day JSE Securities Exchange (“JSE”). Since the JSE is a relatively small stock exchange in comparison to the NYSE, with substantially different characteristics, the nature of the relationship may differ between the two exchanges. The study finds empirical evidence that this relationship between earnings and share returns is the same. As on the NYSE, accounting earnings disclosures in South Africa are found to have significant information content. Evidence is obtained which shows that accounting earnings do capture a significant portion of the information reflected in share returns, although they are not a timely source of information.
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Saric, Olle, and Pontus Lyngsten. "Investigating Real Earnings Management in the Relationship between Stock Returns and Top Management Stock Ownership." Thesis, Umeå universitet, Företagsekonomi, 2021. http://urn.kb.se/resolve?urn=urn:nbn:se:umu:diva-184320.

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In this thesis the relationship between company performance and top management stock ownership in the Swedish market was examined. As well as conducting research on the influence real earnings management has on company performance, and how real earnings management relates to the top management stock ownership. The study was based on a quantitative approach with secondary data that was retrieved from Eikon Refinitiv database, where the data stretched back from 2018-2020. This research found no clear relationship between the main concepts under investigation, that is stock ownership of top management and stock returns. The authors explain this by the sampling method in this research only include companies with share holdings. Furthermore, compared to other studies looking this research considers multiple market capitalizations who may operate differently. Finally, there is a suspicion in the field of research that the relationship between the two is not of a linear nature as such a linear methodology will not find any clear results. In conclusion, this research could be added to the list that does not find a relationship between the above stated variables to the literature which could further be applied to the Swedish market. In terms of real earnings management, a strong negative influence was found on share returns. The authors suggest that this finding can be used as a basis to form investment strategies through monitoring the occurrence of REM to predict when insiders are going to buy and sell. Through pursuing this strategy, it may be possible to create superior return as this study found support for the semi-strong form of market efficiency. Unfortunately, this study found no clear guidance of resolving agency issues. Rather it was concluded that shareholdings in the top management does not resolve agency problems given the occurrence of REM. The management most likely benefit from this through trading the company stock. However, further investigation on the topic should be conducted as it seems that alignment using holdings become more or less effective at certain levels of management share ownership. Furthermore, the notion that American ways of agency alignment may not be appropriate in the Swedish market was considered but no clear conclusion could be made in this research.
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Pappas, Kostas. "Three essays on earnings management : evidence from the UK." Thesis, University of Manchester, 2016. https://www.research.manchester.ac.uk/portal/en/theses/three-essays-on-earnings-management-evidence-from-the-uk(65e2706f-8a79-4da9-a7f3-4faffb8d581e).html.

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In this thesis, I examine earnings management issues in the UK context. The thesis consists of three essays. The first chapter investigates whether managers base their trade-off decisions among real earnings management, accruals-based earnings management, and classification shifting, on the costs, constraints and timing of each strategy in the UK. The empirical evidence suggests that some, but not all, costs and constraints play a role in managers’ trade-off decisions. Further, contrasting between firms that are most likely to have manipulated earnings and firms that are not likely to have manipulated earnings, I find no difference in the relation of constraints towards all earnings management forms. This indicates that cost and constraints do not capture entirely what they are designed to, in the first place. Finally, I document evidence that is consistent with managers using real and accruals-based earnings management as substitutes but fail to find evidence that classification shifting acts as a substitute. The second essay studies the effect of income smoothing via accruals-based and real earnings management on the relationship between current stock returns, current earnings and future earnings. I measure income smoothing as the contemporaneous correlation between changes in earnings management proxies and pre-managed income. Using a sample of non-financial publicly listed firms in the UK, I show that both accruals-based and real income smoothing measures are associated with significantly positive share price anticipation of earnings. These results are robust to different stock returns specifications, income smoothing measure calculations, abnormal accruals models and accumulation periods of stock returns. In the third and final essay, I investigate the impact of the level of accruals-based and real earnings management on measures of the amount of performance commentary in annual reports for a large sample of UK public firms. I use automated textual analysis to construct disclosure scores based on the amount of performance and causal commentary. The results suggest that firms with higher levels of earnings management have lower levels of disclosure of performance and causal commentary. The presence of bad news for the firm (missed analyst forecast, underperformance or earnings decline) affects the relationship between disclosure and accruals-based earnings management but not the relationship between disclosure and real earnings management.
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Jinxiang, Peng. "A new dimension to efficient market theory : Studying the relationship between discretionary accrual and stock returns for a better understanding of the EMH." Thesis, Umeå universitet, Företagsekonomi, 2015. http://urn.kb.se/resolve?urn=urn:nbn:se:umu:diva-101843.

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CHENG, HSIU-YEN, and 鄭綉燕. "The Relationship of Corporate Governance, Stock Returns and Earnings Management." Thesis, 2010. http://ndltd.ncl.edu.tw/handle/29516487377463910867.

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碩士
真理大學
經濟學系財經碩士班
98
This study focuses on a issue about earnings management and uses 208 listed companies from January 1998 to December 2008 on the Taiwan Stock Exchange as a research sample. The Modified Jones Model estimates discretionary accruals on corporate governance to analyze how discretionary accruals influence a decision making and the Panel Data Model is used to analyze the overall sample. The study of corporate governance on different industries have significant differences in earnings management and income smoothing of the cumulative abnormal return stock. The empirical results show: The relationship between board size and discretionary accruals is a significant negative correlation, indicating the larger the board size using discretionary accruals to the smaller magnitude of earnings The relationship between management; manager shareholding ratio and the leverage is significantly positively correlated, showing manager shareholding ratio and leverage of the higher risk of their use of company projects accruals earnings management is negatively correlated with; The relationship between board Independence and primary shareholder is no significant; The relationship between income smoothing and the cumulative abnormal stock returns is significantly positive .
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Huang, Po-Sung, and 黃柏松. "An Empirical Investigation of Nonlinear Relationship between Earnings and Stock Price Returns." Thesis, 2002. http://ndltd.ncl.edu.tw/handle/55977403422144836737.

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碩士
國立臺灣大學
會計學研究所
90
The purpose of this study is to explore the nonlinear relationship between earnings and stock price returns. Previous studies often consider relation between earnings and stock price returns to be linear; however, this hypothesis may bias estimated coefficients and lower the explanatory power of earnings. As a result, this study makes efforts to reinvestigate whether linear or nonlinear relationship between earnings and stock price returns is appropriate. The sample consists of firms traded in the Taiwan Stock Exchange between the second season of 1999 and the third season of 2001. The relation between earnings and stock price returns is studied under linear regression model and nonlinear regression model separately. The findings are as follows: 1. The functional relation between earnings and stock price returns is S-shaped. However, as the absolute value of unexpected earnings gets smaller, the S-shape becomes less significant. 2. The S-shaped model is more appropriate for the companies of small size than the large ones. 3. After controlling persistence, predictability, risk, and growth opportunity, S-shape effect is still most influential in earnings response coefficient but is not significant statistically.
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Chu, Wang-Hua, and 朱婉華. "The Relationship between Prospect Information, Abnormal Returns, Earnings Persistence, and Management Forecast Reliability." Thesis, 2011. http://ndltd.ncl.edu.tw/handle/72922873475395344337.

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碩士
國立臺灣大學
會計學研究所
99
For market participants, annual reports are important information source for valuation of firms. As a result, the reliability and relevance of annual reports have always been popular research issues. Annual reports contain both numeric and narrative information. The numeric information mostly presents past performance and is certainly an important basis for valuation. However, the prospect of future performance of a firm may be even more relevant with valuation. The prospect information is usually presented in narratives. This study attempts to investigate: (1) whether the prospect narrative information contained in president’s letters affects capital market; (2) whether numeric financial performance of a firm influences the credibility of its narrative prospect information, and (3) the relationships between earnings persistence and the consistency between numeric financial performance and prospect information. Applying content analysis, this study analyzes president’s letters contained in the 2007 annual reports of the 647 Taiwanese public companies. Narrative prospect information is classified into positive/negative economic environment prospect, industry prospect, or individual firm prospect. The empirical results are as follows. Firstly, the cumulative abnormal returns around earnings announcement are not affected by positive or negative prospect information. Secondly, the credibility of negative prospect information is significantly higher than that of positive prospect information, which is consistent with Incomplete Revelation Hypothesis. However, the credibility of positive/negative prospect information is not related to financial performance, which is inconsistent with Management Obfuscation Hypothesis. Lastly, if a firm has financial operating results consistent with the positive/negative messages, it has better earnings persistence.
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CHEN, WEI-HSIN, and 陳威信. "Relationship between Unsystematic Earnings and Expected Stock Returns of Listed Companies in Taiwan." Thesis, 2009. http://ndltd.ncl.edu.tw/handle/07523941350219950679.

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碩士
逢甲大學
財務金融學所
97
This thesis provides an analysis of the predictability of stock returns using market-, and firm-level earnings. Then we compare earnings and dividends which act for the expected future cash flow proxy contains more information. The tests in these issues using a sample of 713 firms listed in Taiwan Stock Exchange（TWSE） cover the period from 1996:Q1 to 2008:Q3, and all variables are formed on a quarterly basis. We find that firm-level earnings can forecast the one-quarter-ahead excess stock returns, and firm-level earnings contain information about expected future cash flows beyond dividends. These results are robust after controlling for book-to-market ratio, size, market returns, price momentum, and post-earnings announcement drift. Only the unsystematic portion of earnings is correlated with future stock returns, while the variability in systematic earnings is unrelated to expected returns. These results indicate that when firm-level earnings are aggregated to generate the market-level earnings, the information content of firm-level earnings about future cash flows diversifies away. Hence, aggregate-level earnings do not have any explanatory power for excess market returns.
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Books on the topic "Returns-earnings relationship"

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Pencavel, John H. Diminishing Returns at Work. Oxford University Press, 2018. http://dx.doi.org/10.1093/oso/9780190876166.001.0001.

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This book concerns working hours - in the past and in the present, in America and in Britain. The focus is on the relationship between working hours and outcome , such as production and health. Proportional increases in working hours are shown to result in smaller proportional increases in production, and the benefits in output of long working hours may not offset the consequences of long hours for the health and quality of life of workers. A distinction is made between nominal hours (those that individuals are observed to be working) and effective hours (those that are effective in producing goods and that are compatible with good health). The meaning of the link between hours and average hourly earnings receives particular attention. Firms are encouraged to experiment with different hours..
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Book chapters on the topic "Returns-earnings relationship"

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Azimli, Asil, and Pınar Evrim Mandaci. "Examining the Relationship between the Stock Returns and Earnings Measures – Evidence from Borsa Istanbul." In New Challenges in Banking and Finance, 65–76. Cham: Springer International Publishing, 2017. http://dx.doi.org/10.1007/978-3-319-66872-7_6.

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Beynon, Malcolm J., and Mark Clatworthy. "Analysing the Returns-Earnings Relationship." In Meta-Heuristics Optimization Algorithms in Engineering, Business, Economics, and Finance, 198–222. IGI Global, 2013. http://dx.doi.org/10.4018/978-1-4666-2086-5.ch007.

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This chapter considers the problem of understanding the relationship between company stock returns and earnings components, namely accruals and cash flows. The problem is of interest, because earnings are a key output of the accounting process, and investors have been shown to depend heavily on earnings in their valuation models. This chapter offers an elucidation on the application of a nascent data analysis technique, the Classification and Ranking Belief Simplex (CaRBS) and a recent development of it, called RCaRBS, in the returns-earnings relationship problem previously described. The approach underpinning the CaRBS technique is closely associated with uncertain reasoning, with methodological rudiments based on the Dempster-Shafer theory of evidence. With the analysis approach formed as a constrained optimisation problem, details on the employment of the evolutionary computation based technique trigonometric differential evolution are also presented. Alongside the presentation of results, in terms of model fit and variable contribution, based on a CaRBS classification-type analysis, a secondary analysis is performed using a development RCaRBS, which is able to perform multivariate regression-type analysis. Comparisons are made between the results from the two different types of analysis, as well as briefly with more traditional forms of analysis, namely binary logistic regression and multivariate linear regression. Where appropriate, numerical details in the construction of results from both CaRBS and RCaRBS are presented, as well emphasis on the graphical elucidation of findings.
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