IDEAS home Printed from https://ideas.repec.org/a/taf/ufajxx/v53y1997i2p13-19.html
   My bibliography  Save this article

Earnings Surprise Research: Synthesis and Perspectives

Author

Listed:
  • Lawrence D. Brown

Abstract

An investigation of the relation between earnings surprise and three empirical anomalies—the P/E effect, the size effect, and the Value Line enigma—indicates that the standardized unexpected earnings (SUE) effect appears to be separate and distinct from each of the three. The relations between the SUE phenomenon and firm risk, the appropriateness of the earnings expectations model, and the role of transaction costs are also investigated. The SUE phenomenon is not attributable to inappropriate risk adjustment, use of the “wrong” earnings expectations model, or ignoring transaction costs. The SUE effect may be partly explained by analysts' behavior and is both predictable and profitable. The SUE effect has also been observed in Japan.

Suggested Citation

  • Lawrence D. Brown, 1997. "Earnings Surprise Research: Synthesis and Perspectives," Financial Analysts Journal, Taylor & Francis Journals, vol. 53(2), pages 13-19, March.
    • Handle: RePEc:taf:ufajxx:v:53:y:1997:i:2:p:13-19
    DOI: 10.2469/faj.v53.n2.2067
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.2469/faj.v53.n2.2067
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.2469/faj.v53.n2.2067?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    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:taf:ufajxx:v:53:y:1997:i:2:p:13-19. 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/ufaj20 .

    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.