Discussion of Differential market reactions to revenue and expense surprises

• 成果类型: Editorial Material
• 署名作者: Berger, PG
• 署名单位: University of Chicago
• 刊物名称: REVIEW OF ACCOUNTING STUDIES
• ISSN/ISSBN: 1380-6653
• DOI: 10.1023/A:1024461328106
• 发表日期: 2003
• 页码: 213-220
• 关键词: information-content; earnings

摘要

Ertimur et al. (2003, this issue) study the difference in the market's reaction to revenue versus expense surprises. The discussion first reviews their main findings and assesses the paper's potential contributions. Alternative explanations are then considered for the base-line result that the market reacts more to revenue surprises than to expense surprises. The hypothesized reasons for revenue surprises to matter more are critiqued, as are the tests of the hypotheses, and potential extensions that would link these test to financial statement analysis are suggested. Finally, two aspects of the assessment of how the reaction to revenue and expense surprises differs across value and growth firms are discussed: The definitions of value and growth firms and the potential benefits of assessing why analyst revenue forecasts are (not) observed for many value (growth) firms.