Advanced Search
MyIDEAS: Login

Market-Wide Commonalities in Corporate Earnings and Significance Tests of Accounting Beta

Contents:

Author Info

  • Bhat Ramesh

Abstract

The annual earnings performance of a company reflect numerous events. Some of these events affect almost all the companies in the economy whereas some are specific to the industry in which the company is operating. The objective of the present paper is to discern and quantify the influences arising primarily because of economy-wide factors. They are referred as market-wide commonalities in corporate earnings. This has been done by using the market model framework. The study uses a sample of 182 companies from the population of companies listed on the Bombay Stock Exchange The earnings and book rate of return series of 17 years for each company is used to construct the market index. The accounting earnings beta estimates are obtained for each company by using OLS method. The market model has been tested in its various forms. The model consistent with OLS specification has been considered to be more relevant in interpreting the results. The hypothesis that there is a systematic index does not find empirical support. The explanatory power of the models consistent with OLS assumptions has been found to be very low.

Download Info

To our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.

Bibliographic Info

Paper provided by Indian Institute of Management Ahmedabad, Research and Publication Department in its series IIMA Working Papers with number WP1988-05-01_00826.

as in new window
Length:
Date of creation:
Date of revision:
Handle: RePEc:iim:iimawp:wp00826

Contact details of provider:
Phone: 91 79 2630 7241
Fax: 91 79 2630 6896
Web page: http://www.iimahd.ernet.in/publications
More information through EDIRC

Related research

Keywords:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:iim:iimawp:wp00826. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.