Forecasting Profitability and Earnings

By B. Maris. 2000

261 citations recorded by the source corpus.

Subfields: Management Science and Operations Research, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/00c3f3853672e56b59821335cb30709386046228

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In Management Science and Operations Research

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Citations in the corpus

Feedback effects of credit ratings (2013, background): “Several empirical studies indeed find that earnings are mean-reverting (Freeman, Ohlson, and Penman (1982), Kormendi and Lipe (1987), Easton and Zmijewski (1989), Fama and French (2000)).”
Investor sentiment aligned: : A powerful predictor of stock returns (2015, methodology): “We use aggregate dividend growth as our primary cash flow proxy, which is widely examined and used in similar studies in the literature (e.g., Campbell and Shiller, 1988; Fama and French, 2000; Menzly, Santos, and Veronesi, 2004; Lettau and Ludvigson, 2005; Cochrane, 2008, 2011; Binsbergen and Koije”
Do Firms Mislead Investors by Overstating Earnings Before Seasoned Equity Offerings (2000, unknown): “However, this finding can also be interpreted as managers timing equity issues following periods of unusually good financial performance, which reflect long-run mean reversion in earnings (Fama and French, 2000).”
Capital Markets Research in Accounting (2001, background): “There is a long history of practitioners and academics interpreting univariate ratios like the price–earnings multiple and price-to-book ratio as leading indicators of earnings growth (see, for example, Preinreich, 1938; Molodovsky, 1953; Beaver and Morse, 1978; Cragg and Malkiel, 1982; Peasnell, 19”
Cross-sectional forecasts of the equity premium (2006, methodology): “Thus, we use as our primary profitability controls those selected by Fama and French (1999) to predict firm level profitability, excluding variables that have an obvious mechanical link to our valuation measures.”
Share Repurchases as a Potential Tool to Mislead Investors (2010, unknown): “This path-dependent buyback behavior is empirically validated in several papers including Ikenberry et al. (2000) and Chan et al.”
Dividend Changes Do Not Signal Changes in Future Profitability (2005, methodology): “As discussed in Fama and French (2000), the dummy variables and squared terms are designed to pick up the documented nonlinearities in the mean reversion and autocorrelation of earnings.”
Simple Formulas for Standard Errors that Cluster by Both Firm and Time (2011, methodology): “Fama and French (2000) identify these variables as strongly contemporaneously associated with firm-level profitability.”
Strategic corporate social responsibility and economic performance (2013, methodology): “Along the lines of Fama and French (2000), who model ROA as a mean-reverting process, we use a dynamic model for both ROA and Tobin’s Q where their current values are also linked to their first-lag values.”
The Complementarity of Information Technology Infrastructure and E-Commerce Capability: A Resource-Based Assessment of Their Business Value (2004, unknown): “Considerable evidence in the finance literature indicates that current financial performance is often strongly related to prior financial performance [18].”
The Book-to-Price Effect in Stock Returns: Accounting for Leverage (2007, unknown): “ND, it follows that, [ ] − − = = ++++ tt tt t t t NDNOA iOI E B Earn EROCEE 1111 − = ++ t t t t t t t t ND i E B ND NOA OI E B NOA 11 = [ ] [ ]111 +++ −+ tt t t t NBCRNOAEB ND RNOAE (3) This leveraging equation is of the same form as leveraging equations (2) and (1).21 The expe”
The Value Premium (2005, unknown): “…Fama and French (1995), I examine the average profitabilities of value and growth strategies for 11 years around portfolio formation and in the 15 Fama and French (2000) estimate the annual rate of mean reversion of firm-level profitability (including both aggregate and idiosyncratic components)…”