A selection of research on the use of financial statement information in financial markets. Divided into five sections, this text includes coverage on the use of financial statement information in stock markets, by lenders and in risk assessment and bankruptcy protection, as well as its use in takeovers and management buyouts. A section is devoted to forecasting, including analysts' earnings forecasts. The text offers over 30 readings, written by several academics in this area, including Eugene Fama, Stewart Myers and Edward Altman.
PART 1: FINANCIAL STATEMENT INFORMATION AND STOCK PRICES 1) Kothari,
S.P. and R. Sloan, 1992, Information in prices about future earnings:
Implications for earnings response coefficients, Journal of Accounting &
Economics
15. 2) Easton, Peter D., Trevor S. Harris, and James A. Ohlson,
1992, Accounting earnings can explain most of security returns: The case of
long event windows, Journal of Accounting & Economics
15. 3) Anthony, Joseph
H. and K. Ramesh, 1992, Association between accounting performance measures
and stock prices: A test of the life cycle hypothesis, Journal of Accounting
and Economics
15. 4) Lev, B. and S. Thiagarajan, 1991, Financial information
analysis, working paper, University of California, Berkeley. 5) Schipper, K.,
1990, Information transfers, Accounting Horizons, December, 97-107. 6) Ball,
Ray, 1992, Earnings and Price anomalies, Journal of Accounting and Economics
11. 7) Ou, Jane and Steven H. Penman, 1989, Financial statement analysis and
the prediction of stock returns, Journal of Accounting and Economics 8)
Bernard, Victor L. and Jacob K. Thomas, 1990, Evidence that stock prices do
not fully reflect implications of current earnings for future earnings,
Journal of Accounting and Economics
13. 9) Fama, Eugene F. and Kenneth R.
French, 1992, The cross-section of expected returns, the Journal of Finance.
10) Kothari, S.P. and J. Shanken, 1992, Stock return variation and expected
dividents: A time series and cross-sectional analysis, Journal of Financial
Economics
31. PART 2: IMPLICATIONS OF ALTERNATIVE ACCOUNTING METHODS FOR
FINANCIAL STATEMENT ANALYSIS 11) Dawson, J., P. Neupert, and C. Stickney,
1980, Restating financial statements for alternative GAAPS: Is it worth the
effort? Financial Analysts Journal. 12) Stephens, R. and V.Govindrajan, 1990,
on accessing a firm's cash generating ability, The Accounting Review
65. 13)
Beaver, W. and S. Ryan, 1985, How well do statement no. 33 earnings explain
stock returns, Financial Analysts Journal. 14) Palepu, K., The anatomy of an
accounting change,
Chapter 3 in Accounting and Management. 15) Beaver, W. and
R. Dukes, 1973, Interperiod tax allocation, earnings expectations and the
behaviour of security prices, Accounting Review. PART 3: TIME-SERIES
PROPERTIES OF ACCOUNTING EARNINGS, ANALYSTS' FORECASTS AND PRICE-BASED
FORECASTS 16) Ball, R. and R. Watts, 1972, Some time series properties of
accounting income, Journal of Finance. 17) Brooks, L. and D. Buckmaster,
1976, Further evidence of the time series properties of accounting income,
Journal of Finance
31. 18) Brown, L., P. Griffin, R. Hagerman, and M.
Zmijewski, 1987, An evaluation of alternative proxies for the market's
assessment of unexpected earnings, Journal of Accounting and Economists
9.
19) Collins, D., S.P. Kothari, and J. Rayburn, 1987, Firm size and the
information content of prices with respect to earnings, Journal of Accounting
and Economics 9.
