MARKET REACTION TO ANNUAL EARNINGS INNOVATIONS AND ALTERNATIVE TIME-SERIES ASSUMPTIONS: EVIDENCE OF THE BRAZILIAN MARKET
Autor(a) principal: | |
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Data de Publicação: | 2015 |
Outros Autores: | |
Tipo de documento: | Artigo |
Idioma: | eng |
Título da fonte: | Revista de contabilidade e organizações |
Texto Completo: | https://www.revistas.usp.br/rco/article/view/89534 |
Resumo: | This paper analyses the market reaction to earnings innovations under a high interest rate condition and different time-series assumptions for reported earnings. The sample consists of 176 Brazilian listed firms from 1995 to 2013 and the empirical analysis compare different assumptions of earnings persistence. The results show that high levels of interest rates and transitory components in earnings significantly reduce the forward-looking usefulness of accounting information and that different ARIMA assumptions lead to different the cross-sectional classification of firms in high and low earnings persistence. Additionally, the results show that market agents react more to earnings that exhibit high time-series persistence and that low-order ARIMA models work at least as well as high-order models in representing the time-series process of earnings in the earnings-returns association. |
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Revista de contabilidade e organizações |
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MARKET REACTION TO ANNUAL EARNINGS INNOVATIONS AND ALTERNATIVE TIME-SERIES ASSUMPTIONS: EVIDENCE OF THE BRAZILIAN MARKETearnings usefulnessearnings response coefficientearnings persistenceThis paper analyses the market reaction to earnings innovations under a high interest rate condition and different time-series assumptions for reported earnings. The sample consists of 176 Brazilian listed firms from 1995 to 2013 and the empirical analysis compare different assumptions of earnings persistence. The results show that high levels of interest rates and transitory components in earnings significantly reduce the forward-looking usefulness of accounting information and that different ARIMA assumptions lead to different the cross-sectional classification of firms in high and low earnings persistence. Additionally, the results show that market agents react more to earnings that exhibit high time-series persistence and that low-order ARIMA models work at least as well as high-order models in representing the time-series process of earnings in the earnings-returns association.Universidade de São Paulo. Faculdade de Economia, Administração e Contabilidade de Ribeirão Preto2015-12-31info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionPesquisa Empíricaapplication/pdfapplication/xmlhttps://www.revistas.usp.br/rco/article/view/8953410.11606/rco.v9i25.89534Revista de Contabilidade e Organizações; Vol. 9 No. 25 (2015); 56-72Revista de Contabilidade e Organizações; Vol. 9 Núm. 25 (2015); 56-72Revista de Contabilidade e Organizações; v. 9 n. 25 (2015); 56-721982-6486reponame:Revista de contabilidade e organizaçõesinstname:Universidade de São Paulo (USP)instacron:USPenghttps://www.revistas.usp.br/rco/article/view/89534/107582https://www.revistas.usp.br/rco/article/view/89534/146315Copyright (c) 2015 Revista de Contabilidade e Organizaçõesinfo:eu-repo/semantics/openAccessPimentel, Renê CoppeLima, Iran Siqueira2020-06-25T13:36:39Zoai:revistas.usp.br:article/89534Revistahttps://www.revistas.usp.br/rcoPUBhttps://www.revistas.usp.br/rco/oairco@usp.br1982-64861982-6486opendoar:2020-06-25T13:36:39Revista de contabilidade e organizações - Universidade de São Paulo (USP)false |
dc.title.none.fl_str_mv |
MARKET REACTION TO ANNUAL EARNINGS INNOVATIONS AND ALTERNATIVE TIME-SERIES ASSUMPTIONS: EVIDENCE OF THE BRAZILIAN MARKET |
title |
MARKET REACTION TO ANNUAL EARNINGS INNOVATIONS AND ALTERNATIVE TIME-SERIES ASSUMPTIONS: EVIDENCE OF THE BRAZILIAN MARKET |
spellingShingle |
MARKET REACTION TO ANNUAL EARNINGS INNOVATIONS AND ALTERNATIVE TIME-SERIES ASSUMPTIONS: EVIDENCE OF THE BRAZILIAN MARKET Pimentel, Renê Coppe earnings usefulness earnings response coefficient earnings persistence |
title_short |
MARKET REACTION TO ANNUAL EARNINGS INNOVATIONS AND ALTERNATIVE TIME-SERIES ASSUMPTIONS: EVIDENCE OF THE BRAZILIAN MARKET |
title_full |
MARKET REACTION TO ANNUAL EARNINGS INNOVATIONS AND ALTERNATIVE TIME-SERIES ASSUMPTIONS: EVIDENCE OF THE BRAZILIAN MARKET |
title_fullStr |
MARKET REACTION TO ANNUAL EARNINGS INNOVATIONS AND ALTERNATIVE TIME-SERIES ASSUMPTIONS: EVIDENCE OF THE BRAZILIAN MARKET |
title_full_unstemmed |
MARKET REACTION TO ANNUAL EARNINGS INNOVATIONS AND ALTERNATIVE TIME-SERIES ASSUMPTIONS: EVIDENCE OF THE BRAZILIAN MARKET |
title_sort |
MARKET REACTION TO ANNUAL EARNINGS INNOVATIONS AND ALTERNATIVE TIME-SERIES ASSUMPTIONS: EVIDENCE OF THE BRAZILIAN MARKET |
author |
Pimentel, Renê Coppe |
author_facet |
Pimentel, Renê Coppe Lima, Iran Siqueira |
author_role |
author |
author2 |
Lima, Iran Siqueira |
author2_role |
author |
dc.contributor.author.fl_str_mv |
Pimentel, Renê Coppe Lima, Iran Siqueira |
dc.subject.por.fl_str_mv |
earnings usefulness earnings response coefficient earnings persistence |
topic |
earnings usefulness earnings response coefficient earnings persistence |
description |
This paper analyses the market reaction to earnings innovations under a high interest rate condition and different time-series assumptions for reported earnings. The sample consists of 176 Brazilian listed firms from 1995 to 2013 and the empirical analysis compare different assumptions of earnings persistence. The results show that high levels of interest rates and transitory components in earnings significantly reduce the forward-looking usefulness of accounting information and that different ARIMA assumptions lead to different the cross-sectional classification of firms in high and low earnings persistence. Additionally, the results show that market agents react more to earnings that exhibit high time-series persistence and that low-order ARIMA models work at least as well as high-order models in representing the time-series process of earnings in the earnings-returns association. |
publishDate |
2015 |
dc.date.none.fl_str_mv |
2015-12-31 |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion Pesquisa Empírica |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
https://www.revistas.usp.br/rco/article/view/89534 10.11606/rco.v9i25.89534 |
url |
https://www.revistas.usp.br/rco/article/view/89534 |
identifier_str_mv |
10.11606/rco.v9i25.89534 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.relation.none.fl_str_mv |
https://www.revistas.usp.br/rco/article/view/89534/107582 https://www.revistas.usp.br/rco/article/view/89534/146315 |
dc.rights.driver.fl_str_mv |
Copyright (c) 2015 Revista de Contabilidade e Organizações info:eu-repo/semantics/openAccess |
rights_invalid_str_mv |
Copyright (c) 2015 Revista de Contabilidade e Organizações |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
application/pdf application/xml |
dc.publisher.none.fl_str_mv |
Universidade de São Paulo. Faculdade de Economia, Administração e Contabilidade de Ribeirão Preto |
publisher.none.fl_str_mv |
Universidade de São Paulo. Faculdade de Economia, Administração e Contabilidade de Ribeirão Preto |
dc.source.none.fl_str_mv |
Revista de Contabilidade e Organizações; Vol. 9 No. 25 (2015); 56-72 Revista de Contabilidade e Organizações; Vol. 9 Núm. 25 (2015); 56-72 Revista de Contabilidade e Organizações; v. 9 n. 25 (2015); 56-72 1982-6486 reponame:Revista de contabilidade e organizações instname:Universidade de São Paulo (USP) instacron:USP |
instname_str |
Universidade de São Paulo (USP) |
instacron_str |
USP |
institution |
USP |
reponame_str |
Revista de contabilidade e organizações |
collection |
Revista de contabilidade e organizações |
repository.name.fl_str_mv |
Revista de contabilidade e organizações - Universidade de São Paulo (USP) |
repository.mail.fl_str_mv |
rco@usp.br |
_version_ |
1797054145369210880 |