... between current earnings and growth in book value. The empirical model depends only upon accounting earnings to measure value relevant information and expectations for future earnings growth. In this market-efficient, no-arbitrage environment, investors are not required to act irrationally nor...

... confirm the general conclusion in the original study: less reliable accruals lead to lower earnings persistence. © Emerald Group Publishing Limited 2015 Reliability Market efficiency Earnings persistence Accruals Capital market Revisited Thus, the more reliable component...

... information transfers. GICS Industry classification Information transfers Market efficiency Our analysis is based on two different samples. First, in order to replicate TZ, we analyze 132 quarters from 1973 to 2005 and require firms to have a four-digit SIC code and data available to estimate...