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Effect of Earnings Quality on the Returns-Earnings Relationship: Evidence from the Warsaw Stock Exchange (Wplyw jakosci zysku na zaleznosc pomiedzy zyskiem a stopa zwrotu z akcji na przykladzie GPW w Warszawie)

Author

Listed:
  • Rafa³ Cieslik

    (Wydzial Zarzadzania, Uniwersytet Warszawski)

Abstract

The paper examines whether and how earnings quality affects the returns-earnings relationship taking into consideration four earnings attributes including persistence, predictability, smooth ness and stability. For a large sample of non-financial firms listed on the Warsaw Stock Exchange over the period 2009–2016, the study showed that earnings quality has a positive influence on the tested relationship. Moreover, the nature (parameters) of the returns/earnings relation exhibits considerable instability over time and across sectors.

Suggested Citation

  • Rafa³ Cieslik, 2016. "Effect of Earnings Quality on the Returns-Earnings Relationship: Evidence from the Warsaw Stock Exchange (Wplyw jakosci zysku na zaleznosc pomiedzy zyskiem a stopa zwrotu z akcji na przykladzie GPW w ," Research Reports, University of Warsaw, Faculty of Management, vol. 2(22), pages 60-77.
    • Handle: RePEc:sgm:resrep:v:2:i:22:y:2016:p:60-77
    as

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    File URL: http://www.sim.wz.uw.edu.pl/sites/default/files/artykuly/cieslik.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    earnings quality; stock market return; persistence; predictability; smoothness.;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G17 - Financial Economics - - General Financial Markets - - - Financial Forecasting and Simulation

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