Abstract

http://ssrn.com/abstract=1966715
 
 

References (51)



 


 



Earnings Comparability, Accounting Similarities, and Stock Returns: Evidence from Peer Firms’ Earnings Restatements


John L. Campbell


University of Georgia - J.M. Tull School of Accounting

P. Eric Yeung


Cornell University - Samuel Curtis Johnson Graduate School of Management

June 9, 2016


Abstract:     
Using a sample of earnings restatements, we provide evidence that an empirical measure of the comparability in two firms’ earnings (“earnings comparability”) captures the extent to which a firm’s accounting choices and estimates are similar to those of its restating peer firm. We then document that investors appear to underreact to the implications of this earnings comparability signal. Additional analysis reveals that large traders and short-sellers react in a timely manner, and their trades trigger an immediate negative price reaction to earnings comparability. Small traders appear to behave inattentively, and their herding-driven delayed trades contribute to a negative drift in prices.

Number of Pages in PDF File: 49


Open PDF in Browser Download This Paper

Date posted: December 2, 2011 ; Last revised: June 10, 2016

Suggested Citation

Campbell, John L. and Yeung, P. Eric, Earnings Comparability, Accounting Similarities, and Stock Returns: Evidence from Peer Firms’ Earnings Restatements (June 9, 2016). Available at SSRN: http://ssrn.com/abstract=1966715 or http://dx.doi.org/10.2139/ssrn.1966715

Contact Information

John L. Campbell
University of Georgia - J.M. Tull School of Accounting ( email )
Athens, GA 30602
United States
706.542.3595 (Phone)
706.542.3630 (Fax)
P. Eric Yeung (Contact Author)
Cornell University - Samuel Curtis Johnson Graduate School of Management ( email )
Ithaca, NY 14853
United States

Feedback to SSRN


Paper statistics
Abstract Views: 1,402
Downloads: 440
Download Rank: 47,261
References:  51

© 2016 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollobot1 in 0.235 seconds