The Freeman and Tse paper on earnings response coefficients $($ERCs$)$ reported that earnings surprises and abnormal returns are possibly related in a specific way. They used an s$-$shaped curve to illustrate. What does it mean?The Freeman and Tse paper on earnings response coefficients $($ERCs$)$ reported that earnings surprises and abnormal returns are possibly related in a specific way. They used an s$-$shaped curve to illustrate. What does it mean?the association between abnormal returns and unexpected earnings is increasing at a decreasing ratethe association between earnings management and abnormal returns is s$-$shapedabnormal returns exhibit first$-$order stochastic dominance over earningsunexpected earnings and abnormal returns are essentially unrelated