Do Stock Prices Fully Reflect the Implications of Special Items for Future Earnings

By D. Burgstahler, J. Jiambalvo, Terry Shevlin. 2002

232 citations recorded by the source corpus.

Subfields: Accounting, Finance, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/fcf43f43088a53b744526b8182db1645ee4049fd

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Citations in the corpus

The Disclosure of Non-GAAP Earnings Information in the Presence of Transitory Gains (2014, unknown): “1996; Burgstahler et al. 2002; Doyle et al. 2003). We follow the estimation procedure outlined by Doyle et al. (2003) because this procedure does not impose a specific expectation of whether the future implications will occur in the next quarter, four quarters hence, or over several future quarters)”
Changes Over Time in the Revenue-Expense Relation: Accounting or Economics? (2011, unknown): “See Burgstahler et al. (2002) for discussion of Compustat procedures.”
What do dividends tell us about earnings quality? (2009, unknown): “…restructuring charges, and so forth, and because these items are more likely to reflect managers’ accounting discretion than other components of earnings, losses due principally to special items are more likely to be transitory, or of ‘‘low quality’’ (DeAngelo et al. 1992; Burgstahler et al. 2002).”
The pricing of conservative accounting and the measurement of conservatism at the firm-year level (2010, background): “Burgstahler, Jiambalvo, and Shevlin (2002) examine the association of the post-”
The Predictive Value of Expenses Excluded from Pro Forma Earnings (2002, unknown): “These results are consistent with Burgstahler et al. (2002) who find that a portfolio that takes a long position in firms with positive special items and a short position in firms with negative special items earns a small abnormal return around the future earnings announcement date in quarter tþ 4.”
Sec Scrutiny and the Evolution of Non-Gaap Reporting (2008, unknown): “Unlike in Doyle et al. (2003), however, in the earlier time period special items have positive and significant future earnings implications, consistent with Burgstahler et al. (2002) ; this difference is driven by our choice of control variables.”
Signaling Firm Performance Through Financial Statement Presentation: An Analysis Using Special Items* : Financial Statement Presentation (2009, unknown): “These papers reveal that special items vary in the bias affecting their recognition (Francis, Hanna, and Vincent 1996; Riedl 2004) and in their persistence (Burgstahler, Jiambalvo, and Shevlin 2002).”
Earnings Management Using Classification Shifting: an Examination of Core Earnings and Special Items (2006, unknown): “The overstatement can be used to offset future operating expenses (Burgstahler et al. 2002), or reserves associated with restructuring charges can be reversed into income in future periods (Moehrle 2002). The cost of detection from this type of earnings management is lower than that of the more trad”