What question did this study set out to answer?

To explore the connection between accounting information and stock prices, focusing on market reactions and valuations.

A perspective on accounting and stock prices.

View Full Paper

Ask AI

Bookmark

Authors

This article examines how accounting impacts stock prices, highlighting market reactions and valuations.

To explore the connection between accounting information and stock prices, focusing on market reactions and valuations.
Analyzed the relationship between new accounting information and short-term stock price changes.
Explored how earnings and other accounting variables affect stock price levels.
Utilized first differences to address omitted variable issues in valuation studies.
Market reaction studies show a direct impact of accounting information on short-term stock prices.
Valuation studies indicate that changes in earnings correlate with changes in stock prices.
The distinction is emphasized between short-term market reactions and longer-term valuations.

Michael J. Brennan (1991) studied this question.

View Full Paper

Ask AI

Bookmark