Differential Market Reactions to Revenue and Expense Surprises

By Yonca Ertimur, Joshua Livnat, Minna Martikainen. 2003

321 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/2c12525493ca6f869fc8d20074cc993f270e7edd

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Citations in the corpus

Revenue surprises and stock returns (2006, background): “For instance, Ertimur et al. (2003) document that market prices react significantly to revenue surprises on the earnings”
Analysts’ GAAP earnings forecasts and their implications for accounting research (2018, background): “Analysts have increased the availability of disaggregated forecasts since the early 2000s, including forecasts of revenues, operating profits, taxes and cash flows (Ertimur et al., 2003; Call et al., 2009; Givoly et al., 2009; Ertimur et al., 2011; Kim et al., 2015).”
Sustained Earnings and Revenue Growth, Earnings Quality, and Earnings Response Coefficients (2005, unknown): “The second hypothesis follows from the results in prior research (Barth et al., 1999; Ertimur et al., 2003) and our first hypothesis on the quality of earnings.”
The Financial Analyst Forecasting Literature: A Taxonomy with Suggestions for Further Research (2008, background): “Ertimur, Livnat, and Martikainen (2003) Archival, I/B/E/S, 1996-2001.”
Customer-Base Concentration: Implications for Firm Performance and Capital Markets (2012, unknown): “Note that, consistent with Ertimur et al. (2003), I find that (i) the sales surprise (UREV) is positively associated with stock returns, whereas the expense surprise (UEXP) is negatively associated with stock returns, and (ii) the sales surprise coefficient is greater in magnitude than the absolute ”
Why Do Corporate Managers Misstate Financial Statements? the Role of Option Compensation and Other Factors (2007, unknown): “Using quarterly earnings announcements from 1994 through 2001, Ertimur and Livnat (2003) show that investors of growth companies place heavy weight on revenue surprises (rather than expense surprises) to assess the persistence of earnings; they also show that the revenue surprise can aid investors i”
Evidence on the Information Content of Text in Analyst Reports (2014, background): “Overall, the findings of these studies suggest analyst quantitative outputs are informative (Womack 1996; Givoly and Lakonishok 1979; Lys and Sohn 1990; Brav and Lehavy 2003; Asquith et al. 2005; Givoly, Hayn, and Lehavy 2009; Call, Chen, and Tong 2013; Ertimur, Livnat, and Martikainen 2003).”
Accounting complexity, misreporting, and the consequences of misreporting (2012, background): “Growth firms ( Ertimur et al. 2003 ) and firms with analyst revenue forecasts (Ertimur and Stubben 2005) have revenue that is more value relevant.”