The Empirical Relationship between Stock Prices and Long-Term Earnings

Posted: 22 May 2019

See all articles by Hong Qian

Hong Qian

Oakland University - Department of Accounting and Finance

Joseph H. Callaghan

Oakland University

Mohinder Parkash

Oakland University

Austin Murphy

Oakland University - School of Business Administration

Date Written: November 8, 2008

Abstract

This research shows stock prices to be a function of long-term earnings forecasts, as is consistent with financial theory. Stock prices reflect not only the average of the IBES long-term earnings predictions but also some superior forecasting power beyond that aggregated average prediction.

Suggested Citation

Qian, Hong and Callaghan, Joseph H. and Parkash, Mohinder and Murphy, J. Austin, The Empirical Relationship between Stock Prices and Long-Term Earnings (November 8, 2008). Journal of Investing, Vol. 18, No. 3, 2009, Available at SSRN: https://ssrn.com/abstract=1297949

Hong Qian

Oakland University - Department of Accounting and Finance ( email )

347 Elliott Hall
275 Varner Dr.
Rochester, MI 48309
United States

Joseph H. Callaghan

Oakland University ( email )

Rochester, MI 48309-4401
United States
248-370-3538 (Phone)
248-370-4275 (Fax)

HOME PAGE: http://www.sba.oakland.edu/Faculty/Callaghan/index.html

Mohinder Parkash

Oakland University ( email )

Rochester, MI 48309-4401
United States

J. Austin Murphy (Contact Author)

Oakland University - School of Business Administration ( email )

Varner Hall - Room 502
Rochester, MI 48309-4401
United States
248-370-2125 (Phone)
248-370-4275 (Fax)

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