The Informativeness of Micro and Macro Information During Economic Crisis and Non-Crisis Periods

Details

Serval ID
serval:BIB_758928CF6A28
Type
Inproceedings: an article in a conference proceedings.
Publication sub-type
Abstract (Abstract): shot summary in a article that contain essentials elements presented during a scientific conference, lecture or from a poster.
Collection
Publications
Institution
Title
The Informativeness of Micro and Macro Information During Economic Crisis and Non-Crisis Periods
Title of the conference
39th Annual Congress of the European Accounting Association
Author(s)
Doukakis L., Ghicas D., Siougle G., Sougiannis T.
Publisher
European Accounting Association
Address
Maastricht, The Netherlands
Publication state
Published
Issued date
2016
Language
english
Abstract
We investigate whether the informativeness of reported profitability and macroeconomic expectations differs between non-crisis and crisis economic periods by analyzing data for five European Union countries over the period 2005-2011. We find, first, macroeconomic expectations: a) are useful in predicting future profitability only in non-crisis periods, and b) are not useful in predicting stock returns in either period. Second, reported profitability: a) is useful in predicting future profitability in both crisis and non-crisis periods but less so in crisis periods, and b) is useful in predicting returns only in crisis periods. The cash flow component of profitability drives these results while the accrual component appears to be uninformative. Third, expected profitability, implied by the interaction between current profitability and macroeconomic expectations, is informative in predicting future profitability in both crisis and non-crisis periods and is efficiently priced only for high profitability firms during non-crisis periods.
Create date
20/06/2017 9:14
Last modification date
21/08/2019 5:17
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