Including Earnings of Delisting Firms in Studies Using CRSP/Compustat Merged Data

25 Pages Posted: 21 Sep 2017 Last revised: 4 Apr 2023

See all articles by Peter D. Easton

Peter D. Easton

University of Notre Dame - Department of Accountancy

Martin M. Kapons

University of Amsterdam - Amsterdam Business School

Peter Kelly

University of Notre Dame

Andreas Neuhierl

Washington University in St. Louis - John M. Olin Business School

Date Written: April 3, 2023

Abstract

Most studies of relations between stock market returns and accounting data are based on the CRSP/Compustat merged data set. Earnings observations for firms that are delisted but remain on either the Compustat Fundamentals Annual or Quarterly files are generally excluded even though delisting returns are available on CRSP. Of course, these accounting data are readily available. We show that including these observations may change inferences; previously documented results on the pricing of cash flows and accruals change, and asymmetric timeliness of earnings recognition is greater than previously documented.

Keywords: earnings, delistings

JEL Classification: G14

Suggested Citation

Easton, Peter D. and Kapons, Martin M. and Kelly, Peter and Neuhierl, Andreas, Including Earnings of Delisting Firms in Studies Using CRSP/Compustat Merged Data (April 3, 2023). Available at SSRN: https://ssrn.com/abstract=3040354 or http://dx.doi.org/10.2139/ssrn.3040354

Peter D. Easton

University of Notre Dame - Department of Accountancy ( email )

Mendoza College of Business
Notre Dame, IN 46556-5646
United States
574-631-6096 (Phone)
574-631-5127 (Fax)

Martin M. Kapons

University of Amsterdam - Amsterdam Business School ( email )

Spui 21
Amsterdam, 1018 WB
Netherlands

Peter Kelly (Contact Author)

University of Notre Dame ( email )

Andreas Neuhierl

Washington University in St. Louis - John M. Olin Business School ( email )

St. Louis, MO
United States

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
569
Abstract Views
2,995
Rank
87,062
PlumX Metrics