Explain why the market might begin to anticipate the GN or BN in earnings as much as a year in advance, as Ball and Brown found in Figure 5 3 Abnormal Performance Index Figure 5 3 Abnormal Returns for GN and BN Firms 1 12 1 10 1 08 1 06 1 04 1 02 GN 1 00 0 98 Total sample 0 96 0 94 0 92 0 90 0 88 1...

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Explain why the market might begin to anticipate the GN or BN in earnings as much as

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Explain why the market might begin to anticipate the GN or BN in earnings as much as a year in advance, as Ball and Brown found in Figure 5.3.

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Financial Accounting Theory

ISBN: 9780132072861

5th Edition

Authors: William R Scott

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Question Posted: Jun 06, 2024 01:18 AM

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Explain why the market might begin to anticipate the GN or BN in earnings as much as

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Abnormal Performance Index Figure 5.3 Abnormal Returns for GN and BN Firms 1.12 1.10 1.08 1.06 1.04 1.02 GN 1.00 0.98 Total sample 0.96 0.94 0.92 0.90 0.88 -12 -10 -8 -6 BN -2 0 +2 +4 +6 Month Relative to Annual Report Announcement Date

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Financial Accounting Theory

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