The Explanatory Power of Earnings Levels vs. Earnings Changes in the Context of Executive

@article{Kang1999TheEP,
  title={The Explanatory Power of Earnings Levels vs. Earnings Changes in the Context of Executive},
  author={Sok-Hyon Kang and William R. Baber},
  journal={Accounting review: A quarterly journal of the American Accounting Association},
  year={1999},
  volume={74},
  pages={459-472}
}
  • Sok-Hyon Kang, William R. Baber
  • Published 1999
  • Economics
  • Accounting review: A quarterly journal of the American Accounting Association
  • Studies in the capital market context indicate that earnings changes and earnings levels considered jointly provide a more comprehensive representation of unexpected earnings than either earnings changes or earnings levels considered alone. Recent studies of executive compensation demonstrate that executive compensation revisions are greater when earnings innovations are permanent, than when innovations are transitory. Together, these literatures imply that both earnings changes and earnings… CONTINUE READING
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