Philip Brown* John W. Kennelly

The Informational Content of Quarterly Earnings: An Extension and Some Further Evidence


The usefulness of quarterly earnings per share (EPS) data is subject to some debate.1 Our intent in this paper is to extend empirical knowledge of current reporting in one sense. While we adopt a different approach from the previous studies, our results have implications regarding them, and for future research.2

Previous empirical research addresses the contribution of quarterly EPS to predictions of (1) annual EPS3 or (2) ex post rates of return on common stocks for one- to twelve-year horizons.4 The results appear anomalous.5 We chose a different empirical design, based upon a different though still restricted, ...

Get Financial Accounting and Equity Markets now with the O’Reilly learning platform.

O’Reilly members experience live online training, plus books, videos, and digital content from nearly 200 publishers.