Discussion of 'How Well Do Investors Understand Loss Persistence?'
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
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, M41Accepted Paper Series
Date posted: May 15, 2011 ; Last revised: August 31, 2011
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
This page was processed by apollo4 in 2.860 seconds