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Accounting Earnings and Security Valuation: Empirical Evidence of the Fundamental Links
16 references·16 citing·40 second hopsampled
Accounting Earnings and Security Valuation: Empirical Evidence of the Fundamental Links (1985)Accounting Earnings and Security Valuatio…The Adjustment of Stock Prices to New Information (2003)The Adjustment of Stock Price…Timeliness of Reporting and the Stock Price Reaction to Earnings Announcements (1984)Timeliness of Reporting and t…Dividend variability and variance bounds tests for the rationality of stock market prices (1983)Dividend variability and vari…Using Financial Data to Measure Effects of Regulation (1981)Using Financial Data to Measu…The Present-Value Relation: Tests Based on Implied Variance Bounds (1981)The Present-Value Relation: T…The information content of security prices (1980)The information content of se…Quarterly Dividend and Earnings Announcements and Stockholders' Returns: An Empirical Analysis (1980)Quarterly Dividend and Earnin…On Estimating the Expected Return on the Market: An Exploratory Investigation (1980)On Estimating the Expected Re…Do Stock Prices Move Too Much to be Justified by Subsequent Changes in Dividends? (1980)Do Stock Prices Move Too Much…Risk-adjusted discount rates and capital budgeting under uncertainty (1977)Risk-adjusted discount rates …The Impact of Dividend and Earnings Announcements: A Reconciliation (1976)The Impact of Dividend and Ea…The arbitrage theory of capital asset pricing (1976)The arbitrage theory of capit…The Information Content of Dividends (1973)The Information Content of Di…DIVIDEND ANNOUNCEMENTS, SECURITY PERFORMANCE, AND CAPITAL MARKET EFFICIENCY (1972)DIVIDEND ANNOUNCEMENTS, SECUR…Dividend Policy: An Empirical Analysis (1968)Dividend Policy: An Empirical…DISTRIBUTION OF INCOMES OF CORPORATIONS AMONG DIVIDENDS, RETAINED EARNINGS AND TAXES (1956)DISTRIBUTION OF INCOMES OF CO…An evaluation of the impacts of the adoption of IFRS 15 Revenue from Contracts with Customers (2022)An evaluation of the impacts …What Information Matters to Investors at Different Stages of a Firm's Life Cycle? (2018)What Information Matters to I…One Size Does Not Fit All: How the Uniform Rules of FIN 48 Affect the Relevance of Income Tax Accounting (2015)One Size Does Not Fit All: Ho…The Impact of Accounting Information on Stock Prices: Evidence from the Athens Stock Exchange (2012)The Impact of Accounting Info…Value relevance of alternative accounting performance measures: Australian evidence (2010)Value relevance of alternativ…Fundamental and technical analysis: substitutes or complements? (2008)Fundamental and technical ana…Is stock price a good measure for assessing value-relevance of earnings? An empirical test (2007)Is stock price a good measure…The value relevance of earnings and book values in equity valuation: An international perspective ‐ The case of Kuwait (2005)The value relevance of earnin…The Usefulness of Financial Statements Under Chinese Gaap vs. IAS: Evidence from the Shanghai Stock Exchange in PRC (2002)The Usefulness of Financial S…The Role of Economic Fundamentals, Web Traffic, and Supply and Demand in the Pricing of U.S. Internet Stocks (2000)The Role of Economic Fundamen…Market valuation and deregulation of electric utilities (2000)Market valuation and deregula…Clean Surplus Accounting Models and Market-based Accounting Research: A Review (1997)Clean Surplus Accounting Mode…Dividend policy and permanence of earnings (1996)Dividend policy and permanenc…AN EMPIRICAL STUDY OF THE INFORMATION CONTENT OF ACCOUNTING EARNINGS, FUNDS FLOWS AND CASH FLOWS IN THE UK (1995)AN EMPIRICAL STUDY OF THE INF…The Information Content of Cash Flow Figures (1989)The Information Content of Ca…The Share Price Impact of UK CCA Disclosures (1987)The Share Price Impact of UK …Dividend Policy, Growth, and the Valuation of Shares (1961)EFFICIENT CAPITAL MARKETS: A REVIEW OF THEORY AND EMPIRICAL WORK* (1970)Does the Stock Market Overreact? (1985)Noise Trader Risk in Financial Markets (1990)Returns to Buying Winners and Selling Losers: Implications for Stock Market Efficiency (1993)Time Series Analysis, Forecasting, and Control (1995)Rational Expectations and the Theory of Price Movements (1961)An Empirical Evaluation of Accounting Income Numbers (1968)Risk, Return, and Equilibrium: Empirical Tests (1973)Earnings Releases, Anomalies, and the Behavior of Security Returns. (1984)Empirical Tests of the Consumption‐Oriented CAPM (1989)Price and return models (1995)CAPITAL ASSET PRICES: A THEORY OF MARKET EQUILIBRIUM UNDER CONDITIONS OF RISK* (1964)The Valuation of Risk Assets and the Selection of Risky Investments in Stock Portfolios and Capital Budgets (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)Financial Intermediation and Delegated Monitoring (1984)The Cross-Section of Expected Stock Returns (1992)Common risk factors in the returns on stocks and bonds (1993)Asset Prices in an Exchange Economy (1978)Efficient Capital Markets: II (1991)Mental Accounting, Loss Aversion, and Individual Stock Returns (2001)The Dog That Did Not Bark: A Defense of Return Predictability (2007)Investigating Causal Relations by Econometric Models and Cross-Spectral Methods (2010)The Behavior of Stock-Market Prices (1965)Efficient Capital Markets: II (1991)The Determination of Financial Structure: The Incentive-Signalling Approach (1977)The valuation effects of stock splits and stock dividends (1984)Corporate research and development expenditures and share value (1990)Price Reactions to Dividend Initiations and Omissions: Overreaction or Drift? (1995)The Pricing of Options and Corporate Liabilities (1973)A Theory of the Term Structure of Interest Rates (1985)Modeling and Forecasting Realized Volatility (2001)Does the stock market value bank diversification? (2007)Investor sentiment and the mean–variance relation☆ (2010)Constraints on short-selling and asset price adjustment to private information (1987)Evidence that stock prices do not fully reflect the implications of current earnings for future earnings (1990)Driven to Distraction: Extraneous Events and Underreaction to Earnings News (2009)The capital asset pricing model: Some empirical tests (1972)The Cost of Capital, Corporation Finance and the Theory of Investment (1958)The Capital Structure Puzzle (1984)
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References

  • 1976The arbitrage theory of capital asset pricing7,081 cited
  • 1980Do Stock Prices Move Too Much to be Justified by Subsequent Changes in Dividends?4,020 cited
  • 1956DISTRIBUTION OF INCOMES OF CORPORATIONS AMONG DIVIDENDS, RETAINED EARNINGS AND TAXES3,426 cited
  • 2003The Adjustment of Stock Prices to New Information3,063 cited
  • 1981The Present-Value Relation: Tests Based on Implied Variance Bounds1,364 cited
  • 1980Quarterly Dividend and Earnings Announcements and Stockholders' Returns: An Empirical Analysis1,137 cited
  • 1968Dividend Policy: An Empirical Analysis933 cited
  • 1980On Estimating the Expected Return on the Market: An Exploratory Investigation755 cited
  • 1980The information content of security prices737 cited
  • 1984Timeliness of Reporting and the Stock Price Reaction to Earnings Announcements698 cited
  • 1972DIVIDEND ANNOUNCEMENTS, SECURITY PERFORMANCE, AND CAPITAL MARKET EFFICIENCY690 cited
  • 1973The Information Content of Dividends643 cited
  • 1981Using Financial Data to Measure Effects of Regulation608 cited
  • 1983Dividend variability and variance bounds tests for the rationality of stock market prices435 cited
  • 1977Risk-adjusted discount rates and capital budgeting under uncertainty

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392 cited
  • 1976The Impact of Dividend and Earnings Announcements: A Reconciliation97 cited
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    • 2008Fundamental and technical analysis: substitutes or complements?75 cited
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    • 1989The Information Content of Cash Flow Figures60 cited
    • 2018What Information Matters to Investors at Different Stages of a Firm's Life Cycle?58 cited
    • 1997Clean Surplus Accounting Models and Market-based Accounting Research: A Review53 cited
    • 2005The value relevance of earnings and book values in equity valuation: An international perspective ‐ The case of Kuwait48 cited
    • 1995AN EMPIRICAL STUDY OF THE INFORMATION CONTENT OF ACCOUNTING EARNINGS, FUNDS FLOWS AND CASH FLOWS IN THE UK47 cited
    • 2000The Role of Economic Fundamentals, Web Traffic, and Supply and Demand in the Pricing of U.S. Internet Stocks42 cited
    • 2000Market valuation and deregulation of electric utilities38 cited
    • 2007Is stock price a good measure for assessing value-relevance of earnings? An empirical test36 cited
    • 2010Value relevance of alternative accounting performance measures: Australian evidence34 cited
    • 2015One Size Does Not Fit All: How the Uniform Rules of FIN 48 Affect the Relevance of Income Tax Accounting34 cited
    • 2022An evaluation of the impacts of the adoption of IFRS 15 Revenue from Contracts with Customers22 cited
    • 2002The Usefulness of Financial Statements Under Chinese Gaap vs. IAS: Evidence from the Shanghai Stock Exchange in PRC20 cited
    • 1996Dividend policy and permanence of earnings19 cited
    • 1987The Share Price Impact of UK CCA Disclosures17 cited