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Dissertation Information for Anwer Ahmed

NAME:
- Anwer Ahmed
- (Alias) Anwer S. Ahmed

DEGREE:
- Ph.D.

DISCIPLINE:
- Accounting

SCHOOL:
- University of Rochester (USA) (1992)

ADVISORS:
- Ross Watts

COMMITTEE MEMBERS:
- None

MPACT Status: Incomplete - Inspected

Title: Accounting earnings, economic rents and stock returns: An empirical analysis

Abstract: This study extends the literature on the nature of information in accounting earnings by investigating whether unexpected earnings signal changes in future economic rents and value of investment opportunities. The link between future rents and unexpected earnings is generated by a model of a quantity-setting firm facing uncertain demand and cost functions with constant demand and cost elasticities and the assumption that unexpected earnings signal shifts in future demand and cost conditions. The analysis implies that the magnitude of revisions in future rents associated with a unit surprise in earnings varies inversely with demand elasticity and directly with the elasticity of average cost with respect to output (or cost structure). Cross-sectional regressions of estimated ERCs on proxies for these variables provide evidence consistent with the proposition that unexpected earnings signal revisions in future economic rents. However, evidence on their ability to signal changes in value of future investment opportunities is mixed. Several alternative explanations for the findings are tested and ruled out.

MPACT Scores for Anwer Ahmed

A = 1
C = 1
A+C = 2
T = 1
G = 1
W = 1
TD = 1
TA = 0
calculated 2010-09-02 15:06:19

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