Fundamental Factors Influencing Price Earnings Relationships: A Cross Sectional Study (Classic Reprint) - Softcover

Sudhir Krishnamurthi

 
9781330741627: Fundamental Factors Influencing Price Earnings Relationships: A Cross Sectional Study (Classic Reprint)

Synopsis

This book explores the relationship between security prices and accounting earnings by investigating the firm-specific qualities that influence it. The author analyzes earning-price relationships over time for 476 firms and discovers that factors such as research and development, extraordinary items, pension expense, intangibles, capital intensity, size, growth, accounting methods, and risk influence this relationship. The book positions this influence within the broader context of accounting research and its implications for investors and regulators. The author concludes that by understanding the factors that determine the usefulness of earnings, investors can better predict firm earnings and make informed investment decisions, while regulators can identify situations where accounting information is inadequate for valuation and focus their attention on areas where it is most needed.

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