The pricing of earnings and cash flows and an affirmation of accrual accounting

Springer Science and Business Media LLC - Tập 14 Số 4 - Trang 453-479 - 2009
Stephen H. Penman1, Nir Yehuda2
1Graduate School of Business, Columbia University, New York, USA
2Johnson Graduate School of Management, Cornell University Ithaca USA

Tóm tắt

Từ khóa


Tài liệu tham khảo

Aboody, D., Barth, M., & Kasznik, R. (2004). SFAS No. 123 stock-based compensation expense and equity market values. The Accounting Review, 79(April), 251–275.

Ali, A. (1994). The incremental information content of earnings, working capital from operations and cash flows. Journal of Accounting Research, 32(Spring), 61–74.

Ball, R. (1978). Anomalies in relationships between securities’ yields and yield-surrogates. Journal of Financial Economics, 6(June/September), 103–126.

Ball, R., & Brown, P. (1968). An empirical evaluation of accounting income numbers. Journal of Accounting Research, 6(Autumn), 159–177.

Barth, M. (1994). Fair value accounting: Evidence from investment securities and the market valuation of banks. The Accounting Review, 69(January), 1–25.

Barth, M., Beaver, W., Hand, J., & Landsman, W. (1999). Accruals, cash flows, and equity values. Review of Accounting Studies, 3(December), 205–229.

Bowen, R., Burgstahler, D., & Daley, L. (1987). The incremental information content of accrual versus cash flows. The Accounting Review, 62(October), 723–747.

Campbell, J. Y. (1991). A variance decomposition for stock returns. Economic Journal, 101(March), 157–179.

Charitou, A., & Clubb, C. (1999). Earnings, cash flows and security returns over long return intervals: Analysis and UK evidence. Journal of Business Finance and Accounting, 26(April/May), 283–312.

Cheng, C., Liu, C., & Schaefer, T. (1996). Earnings permanence and the incremental information content of cash flows from operations. Journal of Accounting Research, 34(Spring), 173–181.

Clubb, C. (1995). An empirical study of the information content of accounting earnings, funds flows and cash flows in the UK. Journal of Business Finance and Accounting, 22(January), 35–52.

Clubb, C. (1996). Valuation and clean surplus accounting: Some implications of the Feltham and Ohlson model for the relative information content of earnings and cash flows. Contemporary Accounting Research, 13(Spring), 329–337.

Dechow, P. (1994). Accounting earnings and cash flows as measures of firm performance: The role of accounting accruals. Journal of Accounting and Economics, 18(July), 3–42.

Dechow, P., & Dichev, I. (2002). The quality of accruals and earnings: The role of accrual estimation Errors. The Accounting Review, 77(Supplement), 35–59.

Dechow, P., Kothari, S., & Watts, R. (1998). The relation between earnings and cash flows. Journal of Accounting and Economics, 25(May), 133–168.

Dechow, P., Richardson, S., & Sloan, R. (2008). The persistence and pricing of the cash flow component of earnings. Journal of Accounting Research, 46(June), 537–566.

Easton, P., & Harris, T. (1991). Earnings as an explanatory variable for returns. Journal of Accounting Research, 29(Spring), 9–36.

Easton, P., Harris, T., & Ohlson, J. (1992). Aggregate accounting earnings can explain most of security returns: The case of long event windows. Journal of Accounting and Economics, 15(June–September), 119–142.

Fairfield, P., Whisenant, J., & Yohn, T. (2003a). Accrued earnings and growth: Implications for future profitability and market mispricing. The Accounting Review, 78(January), 353–371.

Fairfield, P., Whisenant, J., & Yohn, T. (2003b). The differential persistence of accruals and cash flows for future operating income versus future profitability. Review of Accounting Studies, 8(June–September), 221–243.

Fama, E., & French, K. (1992). The cross-section of expected stock returns. Journal of Finance, 47(June), 427–465.

Feltham, G., & Ohlson, J. (1995). Valuation and clean surplus accounting for operating and financial activities. Contemporary Accounting Research, 12(Spring), 689–731.

Francis, J., Schipper, K., & Vincent, L. (2003). The relative incremental explanatory power of earnings and alternative (to earnings) performance measures for returns. Contemporary Accounting Research, 20(Spring), 121–164.

Holthausen, R., & Watts, R. (2001). The relevance of the value-relevance literature for financial accounting standard setting. Journal of Accounting and Economics, 31(September), 3–75.

Jennings, R. (1990). A note on interpreting incremental information content. The Accounting Review, 65(October), 925–932.

Landsman, W. (1986). An empirical investigation of pension fund property rights. The Accounting Review, 61(October), 662–691.

Lipe, R. (1986). The information contained in components of earnings. Journal of Accounting Research, 24(Supplement), 37–64.

Miller, M., & Modigilani, F. (1961). Dividend policy, growth and the valuation of shares. Journal of Business, 34(October), 411–433.

Nissim, D., & Penman, S. (2001). Ratio analysis and equity valuation: From research to practice. Review of Accounting Studies, 6(March), 109–154.

Nurnberg, H. (2006). Perspectives on the cash flow statement under FASB statement no. 95. Occasional Paper Series, Center for Excellence in Accounting and Security Analysis, Columbia Business School, at https://www4.gsb.columbia.edu/null?exclusive=filemgr.download&file_id=104 .

Ohlson, J. (1995). Earnings, book values, and dividends in equity valuation. Contemporary Accounting Research, 12(Spring), 661–687.

Ohlson, J. (1999). Conservative accounting and risk. Unpublished paper, New York University.

Ohlson, J. (2005). The basic concepts related to returns on earnings regressions. Journal of Contemporary Accounting and Economics, 1(June), 93–102.

Ohlson, J., & Penman, S. (1992). Disaggregated accounting data as explanatory variables for returns. Journal of Accounting, Auditing and Finance, (Spring), 553–573.

Ohlson, J., & Shroff, P. (1992). Changes versus levels in earnings as explanatory variables for returns: Some theoretical considerations. Journal of Accounting Research, 30(Autumn), 210–226.

Penman, S. (1996). The articulation of price-earnings ratios and market-to-book ratios and the evaluation of growth. Journal of Accounting Research, 34(Autumn), 235–259.

Penman, S. (2010). Financial statement analysis and security valuation (4th ed.). New York: The McGraw-Hill Companies.

Penman, S., & Sougiannis, T. (1997). The dividend displacement property and the substitution of anticipated earnings for dividends in equity valuation. The Accounting Review, 72(January), 1–21.

Rayburn, J. (1986). The association of operating cash flow and accruals with security returns. Journal of Accounting Research, 24(Supplement), 112–133.

Richardson, S., Sloan, R., Soliman, M., & Tuna, İ. (2006). The implications of accounting distortions and growth for accruals and profitability. The Accounting Review, 81(May), 713–743.

Shroff, P. (1995). Determinants of the returns-earnings correlation. Contemporary Accounting Research, 12(Fall), 41–55.

Sloan, R. (1996). Do stock prices fully reflect information in accruals and cash flows about future earnings? The Accounting Review, 71(July), 289–315.

Wilson, P. (1987). The incremental information content of accrual and funds components of earnings after controlling for earnings. The Accounting Review, 62(April), 293–322.