• DOI:10.1016/0165-4101(94)90024-8
Corpus ID: 153886211

Lack of timeliness and noise as explanations for the low contemporaneuos return-earnings association

@article{Collins1994LackOT,
  title={Lack of timeliness and noise as explanations for the low contemporaneuos return-earnings association},
  author={D. Collins and S. Kothari and J. Shanken and Richard G. Sloan},
  journal={Journal of Accounting and Economics},
  year={1994},
  volume={18},
  pages={289-324}
}

D. Collins, S. Kothari, +1 author Richard G. Sloan

Published 1994

Economics

Journal of Accounting and Economics

We assess earnings lack of timeliness and value- irrelevant noise in earnings as explanations for the weak contemporaneous return-earnings association. Earnings lack timeliness because objectivity, verifiability, and conservatism conventions underlie the accounting measurement process. Noise in earnings is uncorrelated with returns in all periods. It likely gets introduced when estimates of future cash flows that differ from the markets estimates are included in earnings determined by… CONTINUE READING

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