Earnings Surprise “Materiality” as Measured by Stock Returns

By William R. Kinney, D. Burgstahler, Roger D. Martin. 2002

217 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/26b29dbbc178d11bb8f91312d0b9fa7bdde8f24d

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Citations in the corpus

Opaque financial reports, R2, and crash risk (2009, background): “Specifically, Skinner and Sloan (2002) and Kinney, Burgstahler, and Martin (2002) show dramatic stock price declines associated with even small negative earnings surprises; Matsumoto (2002) and Burgstahler and Eames (2006) provide evidence of earnings management to meet analysts’ forecasts.1 We…”
A Tale of Two Assets: The Effects of Firm Reputation and Celebrity on Earnings Surprises and Investors' Reactions (2010, background): “…a year-end consensus estimate based on the mean of analysts’ last forecasts of firms’ annual earnings (cf. Doyle et al., 2006; Livnat & Mendenhall, 2006) and calculated the percentage difference between this mean estimate and firms’ reported earnings (Kinney et al., 2002; Matsunaga & Park, 2001).”
Understanding Earnings Quality: A Review of the Proxies, Their Determinants and Their Consequences (2010, background): “Finally, two papers document a negative relation between analyst forecast dispersion and ERCs (Imhoff and Lobo, 1992; Burgstahler et al., 2002).”
Analyzing Analyst Research: A Review of Past Coverage and Recommendations for Future Research (2018, background): “Second, it provides a performance metric that executives are acutely sensitive to, given the impact that missing this benchmark has on the firm’s stock price (Kinney et al., 2002; Roychowdhury, 2006).”
The Power of Voice: Managerial Affective States and Future Firm Performance (2012, background): “24 word dictionaries of Loughran and McDonald (2009) to compute the unexpected percentage of positive words (POSWORDS) and negative words (NEGWORDS) in the entire conference call dialog.”
Cost Behavior and Analysts’ Earnings Forecasts (2010, methodology): “While implications of ost behavior are of primary interest to management accountants, this study employs a manage- 6 Kinney et al. 2002 provide a different view, which finds considerable variation in returns for firms reporting positive or negative surprises.”
Shareholder rights, financial disclosure and the cost of equity capital (2006, unknown): “Similar to Kinney et al. (2002) and Payne and Thomas (2004), we scale DISP by the stock price at the earnings forecast date.”