Reported earnings per share (EPS) are frequently rounded to the nearest cent. This paper provides evidence that firms manipulate earnings so that they can round-up and report one more cent of EPS. Specifically, we examine the digit immediately right of the decimal in the calculated earnings per share number expressed in cents. Evidence is presented that firms are more likely to round-up when ma...

The notion of intention share buyback by companies has been an increasingly popular subject study researchers in Malaysia and the developed economies. In particular, impact buybacks on boosting Earnings per Share (EPS) gained much attention. It is recognized that influence board decisions carrying out concentrated ownership a direct increase EPS. To establish actual effects EPS due to buybacks,...

We employ a regression discontinuity design to identify the real effects of share repurchases on other firm outcomes. The probability of share repurchases that increase earnings per share (EPS) is sharply higher for firms that would have just missed the EPS forecast in the absence of the repurchase, when compared with firms that “just beat” the EPS forecast. We use this discontinuity to show th...

Four times per year, companies release earnings reports. Often the day following such reports, the stocks of these companies make significant moves either up or down from the resulting information. Such moves are often attributed to a large surprise between the analyst estimates for the stock and the actual earnings amounts. Unfortunately for the average trader, these jumps usually occur in a v...

the valuation of companies is often complicated by a failure to understand how share prices are set. many senior executive believe that stock prices are set by some vague combination of earnings, growth rates, returns, book values, cash flows, dividends and trading volumes. in this article two general models of valuation are introduced. the firs t one is the accounting model which states that s...

Survey and empirical evidence reveals that managers prefer to avoid earnings dilution, though financial theory suggests that it is irrelevant in firm valuation. We explore contracting and behavioral explanations for this apparent paradox. Using a large sample of debt/equity issuers, we report evidence that managers only avoid earnings dilution when their bonus compensation explicitly depends up...

Earnings per share (EPS) represents the profitability of a common stock and the financial performance of a particular company. Therefore, EPS is often regarded as a major indicator for investors to purchase stocks. The traditional approach is to use a conventional linear time series model for EPS prediction. However, the results would be in doubt when the forecasting problems are nonlinear. For...

The purpose of this study is to explore the impact earnings per share (EPS) and dividends (DPS) on value company Indonesian stock exchange for period 2014-2017. This uses data from 6 food industry companies listed Stock Exchange examine these variables. Multiple regression models are used determine effect earning dividend share. results research show that separately have a significant positive ...

Considering the importance of decision- making in investment, this study prioritizes the accepted pharmaceutical companies in Tehran stock exchange, during 2013-2017 using the following criteria: the return on investment (ROI), reminded increment (RI), return on sales (ROS) and the earnings per share (EPS). Price per earnings ratio of each share (P/E), return on equity (ROE), return on assets (...