Group assignment 2 ppt - An Empirical Evaluation of...

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Unformatted text preview: An Empirical Evaluation of Accounting Income Numbers Group Five 3 Thomas Brennan 3/22/10 What is the author trying to figure out 1. Problematic method of evaluation to interpret the relationship between income numbers and stock price changes Two new models to prove that effects of income numbers 1. 3/22/10 How did the author go about finding an answer 1. Two models: regression model and naive model Data for two models Abnormal Performance Index based on the data and two models Any errors from forecasting income numbers?(differences between expectation and actual) Specific results 3/22/10 2. 3. 4. 5. Author’s Conclusion 1. Timeliness Problem of the annual income report The majority of the reported income information The specific conclusion regarding time frame Another conclusion regarding net income contribution 3/22/10 2. 3. 4. Interesting Point Information contained in the reported income is anticipated by the market. 3 3 No big jump in the API Investors reaction when the income announcement comes out Opposite to Question 9 in 3/22/10 3 Confusion Part of The extent to which the usefulness of accounting income number is to the investors 3 3 Timeliness Most of contents captured by other media source Effects of release of annul income report 3/22/10 3 Raised issues Real media sources 3 Relationship between the magnitude of the unexpected income change and the stock price Significant industry effects 3/22/10 3 3/22/10 ...
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This note was uploaded on 03/21/2010 for the course ACCT 691 taught by Professor Gotti during the Spring '10 term at University of Massachusetts Boston.

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Group assignment 2 ppt - An Empirical Evaluation of...

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