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Associations between Alternative Accounting Profitability Measures and Security Returns

Published online by Cambridge University Press:  06 April 2009

Cheng-Few Lee  and
J. Kenton Zumwalt
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Extract

The importance of accounting information on security price determination is of interest to both security analysts and accountants. Beaver [3], Downes and Dyckman [6], Gonedes [12], Beaver and Manegold [4], and others have investigated the possible relationships between accounting information and market information. Rosenberg [26] has shown the existence of extra-market components of covariance in security returns while Simkowitz and Logue (S–L) [28] have derived the interdependent structure of security returns. However, none of this research has explicitly investigated how the empirical results can be affected by alternative accounting profitability measures within an industry simultaneously.

Type
Research Article
Information
Journal of Financial and Quantitative Analysis , Volume 16 , Issue 1 , March 1981 , pp. 71 - 93
Copyright
Copyright © School of Business Administration, University of Washington 1981

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References

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