Loss firms’ annual report narratives and share price anticipation of earnings

Thomas Schleicher, Khaled Hussainey () and Martin Walker

The British Accounting Review, 2007, vol. 39, issue 2, 153-171

Abstract: We extend prior research into the association between disclosure quality and share price anticipation of earnings by discriminating between firms that report profits and firms that report losses. As a measure of disclosure quality we count the number of forward-looking earnings statements in annual report narratives. To measure the extent to which current share price movements anticipate future earnings changes we regress current stock returns on current and future earnings changes. The coefficients on the future earnings change variables are our measure of share price anticipation of earnings.

Keywords: Loss firms; Annual report narratives; Share price anticipation of earnings (search for similar items in EconPapers)
Date: 2007
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Citations: View citations in EconPapers (24)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:bracre:v:39:y:2007:i:2:p:153-171

DOI: 10.1016/j.bar.2007.03.005

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