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Disaggregated Earnings and Stock Prices: Evidence from International Listed Shipping Firms

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  • Nicholas Apergis
  • John Sorros

Abstract

The goal of this study is to investigate the impact of earnings from vessel sales on stock prices for international listed shipping firms. The empirical findings show that operating income from vessel sales has a higher power in explaining stock prices than operating earnings only as a sole piece of accounting information for future profitability, investment opportunities, and firm valuation. The testing period is from 2000 to 2009. The methodologies are those of panel cointegration and panel causality tests. The implications are very crucial, since managers may manipulate annual earnings by such non-operating activities. Copyright International Atlantic Economic Society 2010

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  • Nicholas Apergis & John Sorros, 2010. "Disaggregated Earnings and Stock Prices: Evidence from International Listed Shipping Firms," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 16(3), pages 269-281, August.
    • Handle: RePEc:kap:iaecre:v:16:y:2010:i:3:p:269-281:10.1007/s11294-010-9263-2
    DOI: 10.1007/s11294-010-9263-2
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    More about this item

    Keywords

    Operating income; Vessel sales; International shipping firms; Stock prices; Panel cointegration and causality; G10; M41; C33;
    All these keywords.

    JEL classification:

    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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