This study examines how individual investor trade in response to quarterly earnings surprises and the relation of trades to subsequent returns. Individuals are highly significant net buyers after negative earnings surprises; net buying is weaker after positive surprises. There is no indication that trading by any of our investor subcategories explains the concentration of drift at subsequent ea...

this paper divulges the long term relationship among earning, investment and dividends from 2000 to 2011. empirical evidence was collected to explore the modigliani and miller theory of dividend irrelevance. data was collected from all the sectors but it was ensured that firms did not have negative data of earnings as it is earnings which are either transformed into investment or dividends. mul...

The last few decades of the twentieth century witnessed fairly dramatic changes in the labor market outcomes and socioeconomic status of American workers at the bottom of the earnings distribution. Earnings of the least skilled adults either stagnated or fell. Moreover, labor force participation and employment have declined considerably, suggesting a reduction in demand for the labor of the lea...

The United States has traditionally depended on the so-called three-legged stool—Social Security, private pensions, and additional personal saving—to finance retirement, but all three legs are becoming increasingly creaky. Social Security and Medicare face long-term financial shortfalls, because of a combination of the imminent retirement of the baby-boom generation, generally lengthening life ...

Significant changes in mean and median analysts’ forecasts errors documented in recent studies are not synchronized across commercial forecast databases over time and are, in large part, a function of the definitions and procedures that determine the reported earnings component of earnings surprises. In this study we describe a number of complications researchers face in drawing inferences from...

This study focuses on the market reaction to information transfers from economically linked customers. I examine whether investors have limited attention with respect to the information contained in customer earnings announcements for suppliers. Using 1083 unique customer–supplier relationships for the period 1983–2011, I find that the cumulative abnormal returns of a supplier surrounding and f...

This paper examines the relative importance of earnings and operating cash flows in equity valuation. In contrast to previous studies that use stock returns or future operating cash flows, we use ex post intrinsic value of equity as the criterion for comparison. Ex post intrinsic value of equity is determined adopting both the discounted dividend and residual income models with ex post (future)...

The Israeli society is ethnically diverse and it is an ideal case for studying the role of rising inequality on the widening earnings gaps between dominant and subordinate groups. Earnings differences between Ashkenazi men—the dominant group in Israeli society—and the other major ethnic/gender groups in the Israeli labor market and society (Mizrahi men, Arab men, Ashkenazi women, and Mizrahi wo...

This paper examines the usefulness of accounting information in predicting earnings management. We investigate a comprehensive sample of firms from 1971-2000 that restated annual earnings. We find that firms restating earnings have high market expectations for future earnings growth and have higher levels of outstanding debt. We also find that a primary motivation for the earnings manipulation ...