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Les Cours Boursiers Et Les Previsions De Rentabilite Des Analystes Sont-Ils En Phase?

Author

Listed:
  • Pascal Alphonse

    (European Center of Corporate Control Studies - LSMRC - PRES Université Lille Nord de France)

  • Michel Levasseur

    (LSMRC - Lille School of Management Research Center - ULR 4112 - SKEMA Business School - Université de Lille)

  • Xia Zhang

    (LSMRC - Lille School of Management Research Center - ULR 4112 - SKEMA Business School - Université de Lille)

Abstract

In this paper we propose a new analysis of the association between the growth of the earnings per share (eps) as reflected in analysts' forceasts, the book value of equity, the eps and the market value of equity. Specifically, we motivate and introduce a new specification of the dynamics of the growth in eps and test its implications in equity valuation. Our empirical results support the predictions of the valuation model and appear consistent with the time varying level of association between the stock prices, the eps and the grouth in eps.

Suggested Citation

  • Pascal Alphonse & Michel Levasseur & Xia Zhang, 2012. "Les Cours Boursiers Et Les Previsions De Rentabilite Des Analystes Sont-Ils En Phase?," Post-Print hal-00690947, HAL.
    • Handle: RePEc:hal:journl:hal-00690947
    Note: View the original document on HAL open archive server: https://hal.science/hal-00690947
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    References listed on IDEAS

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    1. Peter D. Easton & Gregory A. Sommers, 2007. "Effect of Analysts' Optimism on Estimates of the Expected Rate of Return Implied by Earnings Forecasts," Journal of Accounting Research, Wiley Blackwell, vol. 45(5), pages 983-1015, December.
    2. Ohlson, James & Gao, Zhan, 2006. "Earnings, Earnings Growth and Value," Foundations and Trends(R) in Accounting, now publishers, vol. 1(1), pages 1-70, August.
    3. James Claus & Jacob Thomas, 2001. "Equity Premia as Low as Three Percent? Evidence from Analysts' Earnings Forecasts for Domestic and International Stock Markets," Journal of Finance, American Finance Association, vol. 56(5), pages 1629-1666, October.
    4. William R. Gebhardt & Charles M. C. Lee & Bhaskaran Swaminathan, 2001. "Toward an Implied Cost of Capital," Journal of Accounting Research, Wiley Blackwell, vol. 39(1), pages 135-176, June.
    5. Yonca Ertimur & Jayanthi Sunder & Shyam V. Sunder, 2007. "Measure for Measure: The Relation between Forecast Accuracy and Recommendation Profitability of Analysts," Journal of Accounting Research, Wiley Blackwell, vol. 45(3), pages 567-606, June.
    6. Peter Easton & Gary Taylor & Pervin Shroff & Theodore Sougiannis, 2002. "Using Forecasts of Earnings to Simultaneously Estimate Growth and the Rate of Return on Equity Investment," Journal of Accounting Research, Wiley Blackwell, vol. 40(3), pages 657-676, June.
    7. Jing Liu & Doron Nissim & Jacob Thomas, 2002. "Equity Valuation Using Multiples," Journal of Accounting Research, Wiley Blackwell, vol. 40(1), pages 135-172, March.
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