IDEAS home Printed from https://ideas.repec.org/a/ids/intjaf/v1y2009i4p357-374.html
   My bibliography  Save this article

Positive and negative earnings and their interaction with stock returns: empirical evidence from the emerging market of Greece

Author

Listed:
  • Panagiotis E. Dimitropoulos
  • Dimitrios Asteriou

Abstract

This study investigates the informational content of losses and their effect on the association between earnings and stock returns. Previous studies demonstrated that losses are less informative than positive earnings since they are not expected to prolong (Hayn, 1995). Our results prove that this hypothesis is existent in the Greek capital market. Additionally, the results indicate that the frequency of losses varies with firm size. Also, the estimated Earnings Response Coefficients (ERC) increases as the measurement interval of earnings and returns expands. Finally, the tests for the effect of mean reversion in earnings, as the cause for the low informativeness of losses, did not verify our initial hypothesis. Our results are consistent to earlier studies in the USA, Finland, Australia and the Baltic region.

Suggested Citation

  • Panagiotis E. Dimitropoulos & Dimitrios Asteriou, 2009. "Positive and negative earnings and their interaction with stock returns: empirical evidence from the emerging market of Greece," International Journal of Accounting and Finance, Inderscience Enterprises Ltd, vol. 1(4), pages 357-374.
    • Handle: RePEc:ids:intjaf:v:1:y:2009:i:4:p:357-374
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=29144
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:intjaf:v:1:y:2009:i:4:p:357-374. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=231 .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.