Expected earnings growth and portfolio performance

2006 ◽  
Vol 26 (4) ◽  
pp. 431-437 ◽  
Author(s):  
Ronald W. Best ◽  
Charles W. Hodges ◽  
James A. Yoder
Keyword(s):  
Portfolio Performance ◽  
Earnings Growth ◽  
Expected Earnings

Choice, Order Statistics and the Distribution of Earnings

1997 ◽  
Author(s):  
Michael Sattinger
Keyword(s):  
Order Statistics ◽  
Order Statistic ◽  
Occupational Choice ◽  
Earnings Inequality ◽  
Limiting Distribution ◽  
Asymptotic Results ◽  
Expected Earnings

This paper analyzes the distribution of earnings as being generated by workers choosing among occupations on the basis of earnings maximization. A worker’s earnings then have characteristics of an order statistic. The extension to multiple occupations leads to the revision results from A.D. Roy’s two-occupation case. An additional occupation raises expected earnings while in general reducing earnings inequality. Asymptotic results from order statistics suggest that the process of occupational choice determines a limiting distribution of earnings independently of underlying distributions of occupational abilities.

scholarly journals Methodological Choices In Detecting Divergent Earnings

2011 ◽  
Vol 16 (3) ◽  
Author(s):  
David T. Doran
Keyword(s):  
Market Price ◽  
Test Statistics ◽  
Font Size ◽  
Methodological Choices ◽  
Random Samples ◽  
Nonparametric Statistical Methods ◽  
Expected Earnings ◽  
The Difference ◽  
Reported Earnings ◽  
Nonparametric Statistical

<p class="MsoNormal" style="text-align: justify; margin: 0in 0.5in 0pt;"><span style="letter-spacing: -0.15pt;"><span style="font-size: x-small;"><span style="font-family: Batang;">This paper empirically tests for methodological superiority in detecting divergent earnings (the difference between actual and expected earnings).<span style="mso-spacerun: yes;">&nbsp; </span>Divergent earnings are generated using Value Line forecasted and reported earnings data.<span style="mso-spacerun: yes;">&nbsp; </span>Two hundred random samples of 100 cases each are drawn.<span style="mso-spacerun: yes;">&nbsp;&nbsp;&nbsp; </span>One hundred independent two sample tests are performed with 0%, 1%, 3%, 5%, 7%, and 10 % positive earnings introduced.<span style="mso-spacerun: yes;">&nbsp; </span>The two sample tests are performed using both parametric (t test), and nonparametric (Mann Whitney test) statistics.<span style="mso-spacerun: yes;">&nbsp; </span>They are performed on the &ldquo;divergent earnings&rdquo; data deflated by: 1) forecasted earnings , and 2) the market price of the stock.<span style="mso-spacerun: yes;">&nbsp; </span>The results indicate that the superior alternative is nonparametric statistical methods based upon ranks, and the deflator choice under these nonparametric methods is of little consequence.</span></span></span></p>

Daily Labor Supply and Adaptive Reference Points

2021 ◽  
Vol 111 (8) ◽  
pp. 2417-2443
Author(s):  
Neil Thakral ◽  
Linh T. Tô
Keyword(s):  
Labor Supply ◽  
Reference Point ◽  
Structural Model ◽  
Reference Points ◽  
Degree Of Freedom ◽  
Reference Dependence ◽  
Field Evidence ◽  
Dynamic View ◽  
Expected Earnings ◽  
Dependence Models

This paper provides field evidence on how reference points adjust, a degree of freedom in reference-dependence models. Examining this in the context of cabdrivers’ daily labor-supply behavior, we ask how the within-day timing of earnings affects decisions. Drivers work less in response to higher accumulated income, with a strong effect for recent earnings that gradually diminishes for earlier earnings. We estimate a structural model in which drivers work toward a reference point that adjusts to deviations from expected earnings with a lag. This dynamic view of reference dependence reconciles conflicting “neoclassical” and “behavioral” interpretations of evidence on daily labor-supply decisions. (JEL J22, J31, L94)

Earnings news, expected earnings, and aggregate stock returns

2016 ◽  
Vol 29 ◽  
pp. 110-143 ◽  
Author(s):  
Jung Ho Choi ◽  
Alon Kalay ◽  
Gil Sadka
Keyword(s):  
Stock Returns ◽  
Expected Earnings

scholarly journals On Uneven Expected Earnings in the Lab

2014 ◽  
Author(s):  
Jade Wong ◽  
Andreas Ortmann
Keyword(s):  
Expected Earnings

Tone Concavity around Expected Earnings

2019 ◽  
Vol 95 (1) ◽  
pp. 133-164 ◽  
Author(s):  
Carlo D'Augusta ◽  
Matthew D. DeAngelis
Keyword(s):  
Accounting Conservatism ◽  
Litigation Risk ◽  
Earnings Expectations ◽  
Consensus Forecasts ◽  
Expected Earnings ◽  
Earnings Performance ◽  
The Difference ◽  
Disclosure Tone ◽  
The Relationship ◽  
Future Growth

ABSTRACT We examine whether the relationship between managerial tone and earnings performance depends on the performance of the firm relative to earnings expectations. Using both annual changes in earnings and the difference between realized earnings and analyst consensus forecasts, we find evidence of “tone concavity” around earnings expectations. Specifically, the covariance between managerial tone and earnings performance is positive when earnings are below expectations, but negative when earnings meet or exceed expectations. We interpret our results to suggest that managers downplay positive changes in earnings to attenuate future growth expectations. We also find that tone concavity is significantly attenuated by managers' career concerns and accounting conservatism, but unrelated to litigation risk. Our results indicate that the effect of earnings performance on disclosure tone is complex and reflects managers' incentives to manage expectations.

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