916
Views
9
CrossRef citations to date
0
Altmetric
Original Articles

Extracting Sustainable Earnings from Profit Margins

, &
Pages 685-718 | Received 01 Mar 2012, Accepted 01 Oct 2012, Published online: 06 Dec 2012

References

  • Amir, E., Lev, B. and Sougiannis, T. (2003) Do financial analysts get intangibles? European Accounting Review, 12(4), pp. 635–659. doi: 10.1080/0963818032000141879
  • Barth, M. E., Beaver, W. H. and Landsman, W. (1992) The market valuation implications of net periodic pension cost components Journal of Accounting and Economics, 18, pp. 27–62. doi: 10.1016/0165-4101(92)90011-P
  • Bernard, V. L. and Thomas, J. K. (1989) Post-earnings-announcement drift: delayed price response or risk premium? Journal of Accounting Research, 27, pp. 1–36. doi: 10.2307/2491062
  • Bernard, V. L. and Thomas, J. K. (1990) Evidence that stock prices do not fully reflect the implications of current earnings for future earnings Journal of Accounting and Economics, 13, pp. 305–340. doi: 10.1016/0165-4101(90)90008-R
  • Chan, L. K. C., Jegadeesh, N. and Lakonishok, J. (1996) Momentum strategies Journal of Finance, 51, pp. 1681–1713. doi: 10.1111/j.1540-6261.1996.tb05222.x
  • Dechow, P. M. and Schrand, C. M. (2004) Earnings Quality (Charlottesville, VA: The Research Foundation of the CFA Institute).
  • Dechow, P. M., Sloan, R. G. and Sweeny, A. (1995) Detecting earnings management The Accounting Review, 70, pp. 193–225.
  • Dechow, P. M., Ge, W. and Schrand, C. M. (2010) Understanding earnings quality: a review of the proxies, their determinants and their consequences Journal of Accounting and Economics, 50, pp. 344–401. doi: 10.1016/j.jacceco.2010.09.001
  • Ertimur, Y., Livnat, J. and Martikainen, M. (2003) Differential market reaction to revenue and expense surprise Review of Accounting Studies, 8, pp. 185–211. doi: 10.1023/A:1024409311267
  • Fairfield, P. M. and Yohn, T. L. (2001) Using asset turnover and profit margin to forecast changes in profitability Review of Accounting Studies, 6, pp. 371–385. doi: 10.1023/A:1012430513430
  • Fairfield, P. M., Sweeney, R. and Yohn, T. L. (1996) Accounting classification and the predictive content of earnings The Accounting Review, 69, pp. 337–356.
  • Fairfield, P. M., Ramnath, S. and Yohn, T. L. (2009) Do industry-level analyses improve forecasts of financial performance? Journal of Accounting Research, 47, pp. 147–178. doi: 10.1111/j.1475-679X.2008.00313.x
  • Fama, E. F. and MacBeth, J. (1973) Risk, return, and equilibrium: empirical tests Journal of Political Economy, 81, pp. 607–636. doi: 10.1086/260061
  • Fama, E. F. and French, K. (2000) Forecasting profitability and earnings The Journal of Business, 73, pp. 161–175. doi: 10.1086/209638
  • Francis, J., Olsson, P. and Schipper, K. (2006) Earnings quality Foundations and Trends in Accounting, 1(4), pp. 259–340. doi: 10.1561/1400000004
  • Freeman, R., Ohlson, J. A. and Penman, S. H. (1982) Book rate of returns and the prediction of earnings changes Journal of Accounting Research, 20, pp. 639–653. doi: 10.2307/2490890
  • Gu, Z. and Wu, J. (2003) Earnings skewness and analyst forecast bias Journal of Accounting and Economics, 35, pp. 5–29. doi: 10.1016/S0165-4101(02)00095-2
  • Jegadeesh, N. and Livnat, J. (2006) Revenue surprises and stock returns Journal of Accounting and Economics, 41, pp. 147–171. doi: 10.1016/j.jacceco.2005.10.003
  • Jones, J. J. (1991) Earnings management during import relief investigations Journal of Accounting Research, 29, pp. 193–228. doi: 10.2307/2491047
  • Kama, I. (2009) On the market reaction to revenue and earnings surprises Journal of Business Finance and Accounting, 36, pp. 31–50. doi: 10.1111/j.1468-5957.2008.02121.x
  • Kothari, S. P., Leone, J. L. and Wasley, C. E. (2005) Performance matched discretionary accrual measures Journal of Accounting and Economics, 39, pp. 193–197.
  • Lev, B. (1989) On the usefulness of earnings and earnings research: lessons and directions from two decades of empirical research Journal of Accounting Research, 27, pp. 153–192. doi: 10.2307/2491070
  • Lipe, R. C. (1986) The information contained in the components of earnings Journal of Accounting Research, 24, pp. 37–64. doi: 10.2307/2490728
  • Nissim, D. and Penman, S. H. (2001) Ratio analysis and equity valuation: from research to practice Review of Accounting Studies, 6, pp. 109–154. doi: 10.1023/A:1011338221623
  • Ohlson, J. A. and Penman, S. H. (1992) Disaggregated accounting data as explanatory variables for returns Journal of Accounting, Auditing and Finance, 7, pp. 553–573.
  • Ramakrishnan, R. T. S. and Thomas, J. K. (1998) Valuation of permanent, transitory, and price-irrelevant components of reported earnings Journal of Accounting, Auditing and Finance, 13, pp. 301–336.
  • Schilit, H. and Perler, J. (2010) Financial Shenanigans: How to Detect Accounting Gimmicks & Fraud in Financial Reports, 3rd edn (New York: McGraw Hill).
  • Sloan, R. G. (1996) Do stock prices fully reflect information in accruals and cash flows about future earnings? The Accounting Review, 71, pp. 289–315.
  • Weiss, D. (2010) Cost behavior and analysts’ earnings forecasts The Accounting Review, 85, pp. 1441–1471. doi: 10.2308/accr.2010.85.4.1441
  • Wilson, G. P. (1987) The incremental information content of the accrual and funds components of earnings after controlling for earnings The Accounting Review, 62, pp. 293–322.

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.