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Discussion of: “Do Stock Prices of Property Casualty Insurers Fully Reflect Information About Earnings, Accruals, Cash Flow and Development?”

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  • James M. Wahlen

    (Indiana University)

Abstract

My remarks are intended to accomplish two primary objectives. My first objective is to describe how this paper contributes to several streams of current research, offer a few observations on the strengths and limitations of the research design, and consider several ways one might interpret the results. My second objective is to describe several opportunities for future studies by Bill Beaver and Maureen McNichols or other researchers to extend this line of research to address related questions. I have organized these remarks into the following sections: overview of the paper; strengths of the analysis; opportunities to refine the analysis; interpretations of the results; and potential extensions.

Suggested Citation

  • James M. Wahlen, 2001. "Discussion of: “Do Stock Prices of Property Casualty Insurers Fully Reflect Information About Earnings, Accruals, Cash Flow and Development?”," Review of Accounting Studies, Springer, vol. 6(2), pages 221-228, June.
    • Handle: RePEc:spr:reaccs:v:6:y:2001:i:2:d:10.1023_a:1011614909234
    DOI: 10.1023/A:1011614909234
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    References listed on IDEAS

    as
    1. Petroni, Kathy Ruby, 1992. "Optimistic reporting in the property- casualty insurance industry," Journal of Accounting and Economics, Elsevier, vol. 15(4), pages 485-508, December.
    2. Frederic S. Mishkin, 1983. "A Rational Expectations Approach to Macroeconometrics: Testing Policy Ineffectiveness and Efficient-Markets Models," NBER Books, National Bureau of Economic Research, Inc, number mish83-1.
    3. Bernard, Victor L. & Thomas, Jacob K., 1990. "Evidence that stock prices do not fully reflect the implications of current earnings for future earnings," Journal of Accounting and Economics, Elsevier, vol. 13(4), pages 305-340, December.
    4. Bernard, Vl & Thomas, Jk, 1989. "Post-Earnings-Announcement Drift - Delayed Price Response Or Risk Premium," Journal of Accounting Research, John Wiley & Sons, Ltd., vol. 27, pages 1-36.
    5. Frederic S. Mishkin, 1983. "Introduction to "A Rational Expectations Approach to Macroeconometrics: Testing Policy Ineffectiveness and Efficient-Markets Models"," NBER Chapters, in: A Rational Expectations Approach to Macroeconometrics: Testing Policy Ineffectiveness and Efficient-Markets Models, pages 1-6, National Bureau of Economic Research, Inc.
    6. Beaver, W & Eger, C & Ryan, S & Wolfson, M, 1989. "Financial-Reporting, Supplemental Disclosures, And Bank Share Prices," Journal of Accounting Research, John Wiley & Sons, Ltd., vol. 27(2), pages 157-178.
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    Cited by:

    1. Shivaram Rajgopal & Terry Shevlin & Mohan Venkatachalam, 2003. "Does the Stock Market Fully Appreciate the Implications of Leading Indicators for Future Earnings? Evidence from Order Backlog," Review of Accounting Studies, Springer, vol. 8(4), pages 461-492, December.

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