Discussion of 'How Well Do Investors Understand Loss Persistence?'

Resutek, Robert

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Discussion of 'How Well Do Investors Understand Loss Persistence?'

Robert Resutek

Dartmouth College - Tuck School of Business

April 1, 2011

Review of Accounting Studies, Vol. 16, No. 3, 2011
Tuck School of Business Working Paper No. 2011-98

Abstract:
Li (2011) proposes a quarterly earnings prediction model for loss generating firms, shows that it produces better specified future earnings estimates relative to naïve quarterly forecast models, and that it can be used to form a trading strategy that produces economically significant annual hedge returns. I discuss alternative perspectives on Li’s empirical results and suggest directions for future research.

Number of Pages in PDF File: 15

Keywords: Earnings forecasts, return anomalies, loss persistence

JEL Classification: G24, G29, M41

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Date posted: May 15, 2011 ; Last revised: August 31, 2011

Suggested Citation

Resutek, Robert, Discussion of 'How Well Do Investors Understand Loss Persistence?' (April 1, 2011). Review of Accounting Studies, Vol. 16, No. 3, 2011; Tuck School of Business Working Paper No. 2011-98. Available at SSRN: http://ssrn.com/abstract=1832502

Contact Information

Robert Resutek (Contact Author)

Dartmouth College - Tuck School of Business ( email )

Hanover, NH 03755
United States