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An Evaluation of the Return-Earnings Research

  • Guochang Zhang
Chapter
Part of the Springer Series in Accounting Scholarship book series (KLAS, volume 6)

Abstract

Capital markets research in accounting began with inquiries into the relation between equity return and accounting earnings. The collective efforts made by numerous researchers over the past four decades or so have produced a vast body of work on this topic, which is commonly known as the “ERC” (earnings response coefficient) literature. In this chapter, we firstly give a brief account of this research and evaluate it in the context of the return model developed in  Chap. 9. Previously, Lev (1989) and Kothari (2001), and others have surveyed and evaluated this literature at its various stages, but not in relation to a specific theoretical model.

Keywords

Abnormal Return Earning Announcement Future Earning Return Model Earning Report 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer Science+Business Media New York 2014

Authors and Affiliations

  • Guochang Zhang
    • 1
  1. 1.Hong Kong University of Science and TechnologyKowloonHong Kong SAR

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