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Share valuation : resolving the negative earnings puzzle

Fox, RP and Huruva, F 2015, Share valuation : resolving the negative earnings puzzle , in: British Accounting and Finance Conference 2015, 23 - 25 March 2015, Manchester. (Unpublished)

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This paper presents a resolution of the apparently illogical observation in a number of papers that higher losses are associated with higher share valuations. We create conditional distributions from a sample of 42,857 firm years on the London Stock Exchange and show that the relationship is illusory. We argue that our model is better aligned with the concept of market efficiency and the problem of differentiating between observations and expectations. More generally, the model developed here can be applied to all studies that seek to explain market prices.

Item Type: Conference or Workshop Item (Paper)
Themes: Subjects outside of the University Themes
Schools: Schools > Salford Business School
Refereed: No
Funders: Salford University
Depositing User: RP Fox
Date Deposited: 29 May 2015 14:01
Last Modified: 05 Apr 2016 19:27

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