Comparing the value relevance of two operating income measures

Review of Accounting Studies

Volumn 8, Issue 4, 2003, Pages 561-572

  Brown, Lawrence D ^a   Sivakumar, Kumar ^b  

^a GEORGIA STATE UNIVERSITY   (United States)

^b BOSTON UNIVERSITY   (United States)

Author keywords

Information content; Operating income; Predictive ability; Pro forma earnings; Valuation; Value relevance

Indexed keywords

EID: 3843152741     PISSN: 13806653     EISSN: None     Source Type: Journal    
DOI: 10.1023/A:1027328418571     Document Type: Article

References (20)

1. Abarbanell, J. and R. Lehavy. (2002). "Differences in Commercial Database Reported Earnings: Implications for Empirical Research." Working paper. UNC-Chapel Hill and UC-Berkeley.
2. Aboody, D. and B. Lev. (1998). "The Value Relevance of Intangibles: The Case of Software Capitalization." Journal of Accounting Research 36 (Supplement), 161-190.
3. Ali, A. and P. Zarowin. (1992). "Permanent Versus Transitory Components of Annual Earnings and Estimation Error in Earnings Response Coefficients." Journal of Accounting and Economics 15, 249-264.
4. Biddle, G., R. Bowen and J. Wallace. (1997). "Does EVA Beat Earnings? Evidence on Associations With Stock Returns and Firm Values." Journal of Accounting and Economics 24, 301-336.
5. Bradshaw, M. and R. G. Sloan. (2002). "GAAP Versus the Street: An Empirical Assessment of Two Alternative Definitions of Earnings." Journal of Accounting Research 40, 41-66.
6. Brown, L. and K. Kim. (1993). "The Association Between Nonearnings Disclosures by Small Firms and Positive Abnormal Returns." Accounting Review 68, 668-680.
7. Collins, D., E. Maydew and I. Weiss. (1997). "Changes in the Value Relevance of Earnings and Book Values over the Past 40 Years." Journal of Accounting and Economics 24, 143-181.
8. Elliott, J. and J. D. Hanna. (1996). "Repeated Accounting Write-offs and the Information Content of Earnings." Journal of Accounting Research 34 (Supplement), 135-155.
9. Elliott, J. and W. Shaw. (1988). "Write-offs as Accounting Procedures to Manage Perceptions." Journal of Accounting Research 26 (Supplement), 91-119.
10. Financial Accounting Standards Board. (1997). "Earnings Per Share." Statement of Financial Accounting Standards No. 128.
11. Frankel, R. and C. M. C. Lee. (1998). "Accounting Evaluation, Market Expectation, and Cross-Sectional Stock Returns." Journal of Accounting and Economics 25, 283-319.
12. Francis, J., D. Hanna and L. Vincent. (1996). "Causes and Effects of Discretionary Asset Write-offs." Journal of Accounting Research 34 (Supplement), 135-155.
13. Henry, D. (2001). "The Number Game." Business Week May 14, 100-110.
14. I/B/E/S International, Inc. (1999). The I/B/E/S Glossary: A Guide to Understanding I/B/E/S Terms and Conventions. New York, NY.
15. I/B/E/S International, Inc. (2001). I/B/E/S Monthly Comments, February. New York, NY.
16. Johnson, W. and W. Schwartz. (2001). "Are Investors Misled by 'Pro forma' Earnings?" Working paper. University of Iowa.
17. Lipe, R. (1986). "The Information Contained in the Components of Earnings." Journal of Accounting Research 24 (Supplement), 37-64.
18. Ohlson, J. (1995). "Earnings, Book Values, and Dividends in Security Valuation." Contemporary Accounting Research 14, 661-687.
19. Ramakrishnan, R. T. S. and J. K. Thomas. (1998). "Valuation of Permanent, Transitory, and Price-Irrelevant Components of Reported Earnings." Journal of Accounting, Auditing and Finance 13, 301-336.
20. Turner, L. E. (2000). Remarks to the 39th Annual Corporate Counsel Institute, presented at Northwestern University School of Law. October 12, 2000.