Long-run abnormal returns and income smoothing in the Spanish stock market
This study investigates the market valuation of income smoothing via a long-run analysis of the relationship between income smoothing and return and risk in the Spanish stock market. The results suggest that firms that smooth income appear to yield higher stock returns than firms that do not; they also appear to carry a lower risk associated with size and book-to-market factors. The study concludes that the Spanish market is not efficient in this question because it overvalues firms that artificially smooth income, and because it is possible to reduce the stock's risk by manipulating accounting profits.
Volume (Year): 13 (2004)
Issue (Month): 1 ()
|Contact details of provider:|| Web page: http://www.tandfonline.com/REAR20|
|Order Information:||Web: http://www.tandfonline.com/pricing/journal/REAR20|
When requesting a correction, please mention this item's handle: RePEc:taf:euract:v:13:y:2004:i:1:p:105-130. 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: (Michael McNulty)
If references are entirely missing, you can add them using this form.