A TIME-SERIES APPROACH TO MEASURING THE DECLINE IN QUARTERLY EARNINGS PERSISTENCE

Stephen P. Baginski, Bruce C. Branson, Kenneth S Lorek, G. Lee Willinger

Research output: Contribution to journalArticle

3 Citations (Scopus)

Abstract

Although prior research documents an inter-temporal decline in earnings relevance for equity investors, precise evidence has not been collected on why the decline has occurred. We document a substantial decline in the persistence of quarterly accounting earnings over a 35-year period for a sample of New York Stock Exchange firms. Our findings hold regardless of whether firms are in industries with dramatic increases in spending on information technology through time or not. Further, neither ex ante measures of expected economic change (changes in barriers-to-entry and product type) nor an ex post measure of economic change (quarterly sales persistence) decline inter-temporally for our sample firms.

Original languageEnglish (US)
Pages (from-to)23-42
Number of pages20
JournalAdvances in Accounting
Volume20
DOIs
StatePublished - 2003
Externally publishedYes

Fingerprint

Earnings persistence
Persistence
Economic change
Equity
Barriers to entry
Accounting earnings
New York Stock Exchange
Industry
Investors

ASJC Scopus subject areas

  • Accounting

Cite this

A TIME-SERIES APPROACH TO MEASURING THE DECLINE IN QUARTERLY EARNINGS PERSISTENCE. / Baginski, Stephen P.; Branson, Bruce C.; Lorek, Kenneth S; Willinger, G. Lee.

In: Advances in Accounting, Vol. 20, 2003, p. 23-42.

Research output: Contribution to journalArticle

Baginski, Stephen P. ; Branson, Bruce C. ; Lorek, Kenneth S ; Willinger, G. Lee. / A TIME-SERIES APPROACH TO MEASURING THE DECLINE IN QUARTERLY EARNINGS PERSISTENCE. In: Advances in Accounting. 2003 ; Vol. 20. pp. 23-42.
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