How Do Earnings Numbers Relate to Stock Returns? A Review of Classic Accounting Research with Updated Evidence

By D. Craig Nichols, J. Wahlen. 2004

253 citations recorded by the source corpus.

Subfields: Accounting, Finance, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/098f07e26fe6e2ddf1c3108ad593ee0b899659c9

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

1. B. Gerhart
2. I. Fulmer
3. Joerg-Markus Hitz
4. S. Rynes
5. S. Boelens
6. Geert Braam
7. Anthony J. Nyberg
8. C. Trevor

In Finance

1. Joerg-Markus Hitz
2. I. Fulmer
3. S. Boelens
4. Geert Braam
5. B. Gerhart

In Strategy and Management

1. B. Gerhart
2. Joerg-Markus Hitz
3. S. Rynes
4. I. Fulmer
5. S. Boelens
6. Geert Braam
7. Thomas Li-Ping Tang
8. W. Boswell

Citations in the corpus

• The Decision Usefulness of Fair Value Accounting – A Theoretical Perspective (2007, background): “These observations contrast starkly with the prominent role of earnings in the capital market, which is normally reflected and recognized by the theoretical literature (Nichols and Wahlen, 2004).”
• How Much New Information is There in Earnings (2008, unknown): “To be sure, a careful reading of Ball and Brown (1968), Beaver (1968), Foster, Olsen and Shevlin (1984), Bernard and Thomas (1990), Nichols and Wahlen (2004) and other studies could support the conclusion that earnings announcements are not a timely source of information, even though only Ball and…”
• Quality of financial reporting: measuring qualitative characteristics (2009, background): “…focus on specific attributes of financial reporting information that are expected to influence the quality of financial reporting, such as earnings management, financial restatements, and timeliness (e.g. Barth et al., 2008; Schipper & Vincent, 2003; Cohen et al., 2004; Nichols & Wahlen, 2004).”
• The Role of Accruals in Asymmetrically Timely Gain and Loss Recognition (2005, unknown): “…economists) stock returns are more highly correlated with earnings than with cash flows (e.g., Ball and Brown 1968, Dechow 1994, Basu 1997, Nichols and Wahlen 2004), why analysts typically issue forecasts of earnings rather than cash flows, why analysts use price to earnings valuation…”
• 6 Pay and Performance: Individuals, Groups, and Executives (2009, background): “The main impact of earnings on current stock prices comes when earnings reports carry new information (eg, earnings above or below expectations) not already impounded by the market in the stock price (Ball & Brown, 1968 ; Nichols & Wahlen, 2004 ).”