IDEAS home Printed from https://ideas.repec.org/p/cfi/jseres/cj004.html
   My bibliography  Save this paper

The Value Relevance of Earnings in Transportation Industry

Author

Listed:
  • Takashi Obinata

    (Faculty of Economics, The University of Tokyo)

Abstract

This paper investigates the value relevance of earnings in four transportation industries (railroad, transportation by land, shipping, and warehouse). The business environments in those industries are not the same as those in manufacturing industry, since a part of transportation business in influenced by the industrial regulation. Moreover, the transportation industries have a characteristic of the network industry. This paper especially focuses on the issue whether the value relevance of earnings in transportation industries is different from those in the manufacturing industry. First, by adopting various regression models and by examining across industries and among periods, we find some distinctive results in the transportation industries. In the railroad industry, earnings is valued as if investors expect that earnings will be smoothed by the rate-regulation. On the other hand, although earnings is not so highly relevant in the shipping industry, earnings is value relevant in recent period. Second, the value relevance of earnings in transportation industries does not depend on the relative performance compared with that of the manufacturing industry. We cannot detect the evidence that the performance of transportation industries is evaluated in comparison with the manufacturing industry. Third, in railroad and transportation-by-land industries, the value relevance of earnings differs in the size of network, which is measured by sales volume. In some industry-periods, while earnings for the larger firms is value relevant, earnings for the smaller firms is not relevant. The observed results in this paper re-confirm that the value relevance of earnings considerably differs in industries and period.

Suggested Citation

  • Takashi Obinata, 2004. "The Value Relevance of Earnings in Transportation Industry," CARF J-Series CARF-J-004, Center for Advanced Research in Finance, Faculty of Economics, The University of Tokyo.
  • Handle: RePEc:cfi:jseres:cj004
    as

    Download full text from publisher

    File URL: http://www.carf.e.u-tokyo.ac.jp/old/pdf/workingpaper/jseries/6.pdf
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    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:cfi:jseres:cj004. 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: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/catokjp.html .

    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.