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Accounting Conservatism and the Temporal Trends in Current Earnings’ Ability to Predict Future Cash Flows Versus Future Earnings: Evidence on the Trade-Off Between Relevance and Reliability
16 references·1 citing·41 second hop
Accounting Conservatism and the Temporal Trends in Current Earnings’ Ability to Predict Future Cash Flows Versus Future Earnings: Evidence on the Trade-Off Between Relevance and Reliability (2008)Accounting Conservatism and the Temporal …Accrual reliability, earnings persistence and stock prices (2005)Accrual reliability, earnings…Earnings quality in UK private firms: comparative loss recognition timeliness (2004)Earnings quality in UK privat…Have Individual Stocks Become More Volatile? An Empirical Exploration of Idiosyncratic Risk (2001)Have Individual Stocks Become…Accruals and the Prediction of Future Cash Flows (2001)Accruals and the Prediction o…The changing time-series properties of earnings, cash flows and accruals: Has financial reporting become more conservative? (2000)The changing time-series prop…Have Financial Statements Lost Their Relevance? (1999)Have Financial Statements Los…Equity Valuation and Negative Earnings: The Role of Book Value of Equity (1999)Equity Valuation and Negative…The relation between earnings and cash flows (1998)The relation between earnings…The conservatism principle and the asymmetric timeliness of earnings1 (1997)The conservatism principle an…Changes in the value-relevance of earnings and book values over the past forty years (1997)Changes in the value-relevanc…Value-relevance of nonfinancial information: The wireless communications industry (1996)Value-relevance of nonfinanci…The Cross-Section of Expected Stock Returns (1992)The Cross-Section of Expected…Cross-sectional variation in the stock market response to accounting earnings announcements (1989)Cross-sectional variation in …An analysis of intertemporal and cross-sectional determinants of earnings response coefficients (1989)An analysis of intertemporal …Earnings Innovations, Earnings Persistence, and Stock Returns (1987)Earnings Innovations, Earning…Risk, Return, and Equilibrium: Empirical Tests (1973)Risk, Return, and Equilibrium…The Signaling Effects and Predictive Powers of Dividend Announcements: Evidence from Kingdom of Saudi Arabia (2015)The Signaling Effects and Pre…An Empirical Evaluation of Accounting Income Numbers (1968)Dividend Policy under Asymmetric Information (1985)Positive Accounting Theory (1985)The effect of international institutional factors on properties of accounting earnings (2000)Performance matched discretionary accrual measures (2005)Understanding earnings quality: A review of the proxies, their determinants and their consequences (2010)The information content of losses (1995)The Boundaries of Financial Reporting and How to Extend Them (1999)Information asymmetry, corporate disclosure, and the capital markets: A review of the empirical disclosure literature (2001)Earnings Management During Import Relief Investigations (1991)Accounting earnings and cash flows as measures of firm performance (1994)Capital markets research in accounting (2001)Performance Matched Discretionary Accrual Measures (2001)Editor's Choice Digesting Anomalies: An Investment ApproachThe economic implications of corporate financial reporting (2005)Correcting for Cross-Sectional and Time-Series Dependence in Accounting Research (2010)Digesting Anomalies: An Investment Approach (2012)Efficient Capital Markets: A Review of Theory and Empirical Work (1970)EFFICIENT CAPITAL MARKETS: A REVIEW OF THEORY AND EMPIRICAL WORK* (1970)The Theory of Economic Development (2003)International Accounting Standards and Accounting Quality (2008)On the use of instrumental variables in accounting research (2009)CAPITAL ASSET PRICES: A THEORY OF MARKET EQUILIBRIUM UNDER CONDITIONS OF RISK* (1964)The Behavior of Stock-Market Prices (1965)THE VALUATION OF RISK ASSETS AND THE SELECTION OF RISKY INVESTMENTS IN STOCK PORTFOLIOS AND CAPITAL BUDGETS**This paper is another in a series of interrelated theoretical and statistical studies of corporate financial and investment policies being made under grants from the Rockefeller Foundation, and more recently the Ford Foundation, to the Harvard Business School. The generous support for this work is most gratefully acknowledged. The author is also much indebted to his colleagues Professors Bishop, Christenson, Kahr, Raiffa, and (especially) Schlaifer, for extensive discussion and commentary on an earlier draft of this paper; but responsibility for any errors or imperfections remains strictly his own.[Professor Sharpe's paper, “Capital Asset Prices: A Theory of Market Equilibrium Under Conditions of Risk” (Journal of Finance, September 1964) appeared after this paper was in final form and on its way to the printers. My first section, which parallels the first half of his paper (with corresponding conclusions), sets the algebraic framework for sections II, III and VI, (which have no counterpart in his paper) and for section IV on the equilibrium prices of risk assets, concerning which our results differ significantly for reasons which will be explored elsewhere. Sharpe does not take up the capital budgeting problem developed in section V below.] (1975)Common risk factors in the returns on stocks and bonds (1993)On Persistence in Mutual Fund Performance (1997)Dividend Policy, Growth, and the Valuation of Shares (1961)An Intertemporal Capital Asset Pricing Model (1973)The relations among environmental disclosure, environmental performance, and economic performance: a simultaneous equations approach (2003)Cash Flow Patterns as a Proxy for Firm Life Cycle (2011)The Valuation of Risk Assets and the Selection of Risky Investments in Stock Portfolios and Capital Budgets (1965)Returns to Buying Winners and Selling Losers: Implications for Stock Market Efficiency (1993)Two new Later Stone Age sites from the Final Pleistocene in the Falémé Valley, eastern Senegal (2024)Distribution of the Estimators for Autoregressive Time Series With a Unit Root (1979)Distribution of the Estimators for Autoregressive Time Series With a Unit Root (1979)The Cross‐Section of Volatility and Expected Returns (2006)The Econometrics of Financial Markets (2012)ESG and financial performance: aggregated evidence from more than 2000 empirical studies (2015)Measuring Economic Policy Uncertainty* (2016)Costs of Equity and Earnings Attributes (2004)
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References

  • 1992The Cross-Section of Expected Stock Returns17,320 cited
  • 1973Risk, Return, and Equilibrium: Empirical Tests14,248 cited
  • 1997The conservatism principle and the asymmetric timeliness of earnings13,988 cited
  • 2001Have Individual Stocks Become More Volatile? An Empirical Exploration of Idiosyncratic Risk2,591 cited
  • 2004Earnings quality in UK private firms: comparative loss recognition timeliness2,377 cited
  • 1999Have Financial Statements Lost Their Relevance?1,917 cited
  • 1997Changes in the value-relevance of earnings and book values over the past forty years1,788 cited
  • 1989An analysis of intertemporal and cross-sectional determinants of earnings response coefficients1,685 cited
  • 1998The relation between earnings and cash flows1,552 cited
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  • 1996Value-relevance of nonfinancial information: The wireless communications industry1,303 cited
  • 2001Accruals and the Prediction of Future Cash Flows925 cited
  • 1987Earnings Innovations, Earnings Persistence, and Stock Returns909 cited
  • 1989

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Cross-sectional variation in the stock market response to accounting earnings announcements
816 cited
  • 1999Equity Valuation and Negative Earnings: The Role of Book Value of Equity745 cited
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    • 2015The Signaling Effects and Predictive Powers of Dividend Announcements: Evidence from Kingdom of Saudi Arabia11 cited