TY - JOUR
T1 - The Association between earnings and returns and macroeconomic performance
T2 - Evidence from Australia, the US and China
AU - Clinch, Greg
AU - Wei, Zi
PY - 2011/3/1
Y1 - 2011/3/1
N2 - This paper provides some initial descriptive and exploratory results concerning the earnings-returns relation in periods of poor versus strong macroeconomic performance. Based on data from three countries - Australia, the US and China - the results indicate some differences for US and Chinese firms, but not Australian firms. However the results for US and Chinese firms are somewhat contradictory - US (Chinese) firms generally exhibit a stronger (weaker) earnings-returns association in periods of both negative and strongly positive macroeconomic performance. These differences appear largely attributable to reported profits and not to losses. No evidence is found that poor earnings news released during periods such as the Global Financial Crisis is 'punished' relative to other periods.
AB - This paper provides some initial descriptive and exploratory results concerning the earnings-returns relation in periods of poor versus strong macroeconomic performance. Based on data from three countries - Australia, the US and China - the results indicate some differences for US and Chinese firms, but not Australian firms. However the results for US and Chinese firms are somewhat contradictory - US (Chinese) firms generally exhibit a stronger (weaker) earnings-returns association in periods of both negative and strongly positive macroeconomic performance. These differences appear largely attributable to reported profits and not to losses. No evidence is found that poor earnings news released during periods such as the Global Financial Crisis is 'punished' relative to other periods.
UR - http://www.scopus.com/inward/record.url?scp=79952589693&partnerID=8YFLogxK
U2 - 10.1111/j.1835-2561.2010.00117.x
DO - 10.1111/j.1835-2561.2010.00117.x
M3 - Article
AN - SCOPUS:79952589693
SN - 1035-6908
VL - 21
SP - 54
EP - 63
JO - Australian Accounting Review
JF - Australian Accounting Review
IS - 1
ER -