Core Earnings Uncertainty, Dividend Change Announcements and the Reduction of Covariance Component Risks

2015 ◽  
Vol 42 (9-10) ◽  
pp. 1075-1120 ◽  
Author(s):  
Stephen J. Dempsey ◽  
David M. Harrison ◽  
Hainan Sheng
Keyword(s):  
Covariance Component ◽  
Core Earnings ◽  
Earnings Uncertainty

Core earnings: New data and evidence

2021 ◽  
Author(s):  
Ethan Rouen ◽  
Eric C. So ◽  
Charles C.Y. Wang
Keyword(s):  
Core Earnings

COMMENTARY: Volatility Forecasting

2018 ◽  
Keyword(s):  
Market Efficiency ◽  
Expected Value ◽  
Volatility Forecasting ◽  
Number Of Factors ◽  
Lower Baseline ◽  
Earnings Uncertainty

This paper provides a perspective on volatility forecasting. The basic idea is that a number of factors are leading to volatility having a lower baseline expected value than in prior years. These factors include lower earnings uncertainty, greater market efficiency, better market-marking, and the fact that volatility trading itself tends to reduce volatility.

scholarly journals Another Look at the Macroeconomic Information Content of Aggregate Earnings: Evidence from the Labor Market

2020 ◽  
Author(s):  
Rebecca N. Hann ◽  
Congcong Li ◽  
Maria Ogneva
Keyword(s):  
Labor Market ◽  
Information Content ◽  
Job Creation ◽  
Job Destruction ◽  
Special Items ◽  
Macroeconomic Information ◽  
Earnings Components ◽  
Aggregate Earnings ◽  
Core Earnings ◽  
Near Term

We examine the macroeconomic information content of aggregate earnings from the labor market's perspective. We use insights from the labor economics literature to characterize the information contained in aggregate GAAP earnings and its components that is relevant for predicting aggregate job creation and destruction. Our results suggest that not only does aggregate earnings news convey information about future labor market aggregates, but its information content is incremental to other macroeconomic variables at near-term horizons. Further, the source of this information stems primarily from two earnings components: aggregate core earnings and special items. Shocks to core earnings signal persistent changes in economy-wide profitability that predict aggregate job creation up to four quarters ahead, while shocks to special items predict job destruction up to one quarter. Taken together, our results suggest that aggregate earnings contain useful information about future labor market conditions, with the nature of such information varying across earnings components.

Fixing the Core, Earnings Management, and Sustainable Emergence From Financial Distress: Evidence From China’s Special Treatment System

2021 ◽  
pp. 0148558X2110511
Author(s):  
Jiao Jing ◽  
Kenneth Leung ◽  
Jeffrey Ng ◽  
Janus Jian Zhang
Keyword(s):  
Earnings Management ◽  
Financial Distress ◽  
Operating Efficiency ◽  
Special Treatment ◽  
Multiple Stakeholders ◽  
Listed Firms ◽  
The Core ◽  
Distressed Firms ◽  
Core Earnings

Throughout their business life cycle, firms may experience financial distress. Successful emergence from such distress is important to their multiple stakeholders. Using a sample of publicly listed firms in China that emerged from Special Treatment (an indicator of delisting risk), we focus on the key actions such firms take prior to emergence, namely, fixing the core of the business and earnings management. We examine how these actions are associated with sustainable emergence, which we define as emergence from Special Treatment without reentry in the next 5 years. Consistent with the expectation that shortcut fixes to problems do not yield a long-term solution, we find that repairing the core of the business by improving operating efficiency is positively associated with sustainable emergence, whereas earnings management is negatively associated with it. We also find that the positive (negative) association between fixing the core (earnings management) and sustainable emergence is pronounced only for state-owned enterprises. Our article adds to the limited literature that examines issues related to distressed firms’ sustainable turnaround.

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