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This reply critiques a previous analysis of security returns around earnings announcements, suggesting refinements in understanding firm-size impacts.
Presents a reply to Ray Ball and S.p. Kothari's critique of `A Test of the Extended Functional Fixation Hypothesis,' published in the 1990 issue of the `Accounting Review.' Focus on the firm-size effect on security returns; Critique on the result of the examination of the extended functional fixation hypothesis proposed by the author.
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John R.M. Hand (1991) studied this question.
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