Title: Differences in the Value Relevance of Earnings in Knowledge-Based and Traditional Industries
Abstract: This paper evaluates the value relevance of earnings in knowledge-based and traditional industries. We focus on two factors - earnings' lack of timeliness and noise - that contribute to the weak contemporaneous association between earnings and stock returns in knowledge-based industries. Earnings' lack of timeliness represents the non-contemporaneous association between earnings and stock returns, whereas noise - arising from uncertainty in estimating the expected benefits of investments in intangibles - is unassociated with either contemporaneous, past, or future returns.
Publication Year: 2003
Publication Date: 2003-01-01
Language: en
Type: article
Indexed In: ['crossref']
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Cited By Count: 6
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