Journal article
Firm size and the information content of prices with respect to earnings
Journal of accounting & economics, Vol.9(2), pp.111-138
07/01/1987
DOI: 10.1016/0165-4101(87)90002-4
Abstract
Beaver, Lambert and Morse (1980) suggest that prices may be useful in forecasting future earnings. We explore the information content of prices with respect to earnings by focusing on firm size and its relation to the predictive accuracy of price-based earnings forecasts. Firm size proxies for the amount of information and for the number of traders and professional analysts processing the available information about an enterprise. Our empirical results are consistent with the hypothesis that price-based earnings will outperform univariate time series forecasts by a greater margin for larger firms than for smaller firms. © 1987.
Details
- Title: Subtitle
- Firm size and the information content of prices with respect to earnings
- Creators
- Daniel W. Collins - University of IowaS. P. Kothari - University of RochesterJudy Dawson Rayburn - University of Minnesota
- Resource Type
- Journal article
- Publication Details
- Journal of accounting & economics, Vol.9(2), pp.111-138
- DOI
- 10.1016/0165-4101(87)90002-4
- ISSN
- 0165-4101
- eISSN
- 1879-1980
- Number of pages
- 28
- Language
- English
- Date published
- 07/01/1987
- Academic Unit
- Accounting
- Record Identifier
- 9984963043702771
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