Abnormal real operations, real earnings management, and subsequent crashes in stock prices
نویسندگان
چکیده
منابع مشابه
Abnormal real operations, real earnings management, and subsequent crashes in stock prices
We study the impact of firms’ abnormal business operations on their future crash risk in stock prices. Computed based on real earnings management (REM) models, firms' deviation in real operations from industry norms (DRO) is shown to be positively associated with their future crash risk. This association is incremental to that between discretionary accruals (DA) and crash risk found by prior st...
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Long historical averages of real earnings help forecast present values of future real dividends. With aggregate U.S. stock market data (1871-1986), a vector-autoregressive forecast of the present value of future dividends is, for each year, roughly a weighted average of moving-average arnings and current real price, with between two thirds and three fourths of the weight on the earnings measure...
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Earnings prediction is one of the most important communication channels for transferring information to investors. Despite the importance of earnings prediction, few studies examined whether real earnings management are effective in predicting them. In this paper, the effect of earnings forecasting on firm risk is reviewed by considering real earnings management. Since earnings prediction char...
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ژورنال
عنوان ژورنال: Review of Quantitative Finance and Accounting
سال: 2014
ISSN: 0924-865X,1573-7179
DOI: 10.1007/s11156-014-0468-y