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The usefulness of quarterly earnings per share (EPS) data is subject to some debate.' Our intent in this paper is to extend empirical knowledge of current reporting in one sense. While we adopt a different approach from the previous studies, our results have implications regarding them, and for future research.2 Previous empirical research addresses the contribution of quarterly EPS to predictions of (1) annual EPS3 or (2) ex post rates of return on common stocks for oneto twelve-year horizons.4 The results appear anomalous.5 We chose a different empirical design, based upon a different though still restricted, view of informational content.
Brown et al. (Sat,) studied this question.