Quarterly Earnings Thresholds: Making the Case for Prior Quarter Earnings

2021 ◽  
Author(s):  
Sanghyuk Byun ◽  
Kristin Roland
Keyword(s):  
Quarterly Earnings ◽  
Earnings Thresholds

The Timing of Asset Purchases to Achieve Earnings Thresholds

2015 ◽  
Vol 28 (1) ◽  
pp. 81-106 ◽  
Author(s):  
Thomas G. Canace ◽  
Leigh Salzsieder
Keyword(s):  
Capital Investment ◽  
Capital Expenditure ◽  
Investment Decisions ◽  
Capital Intensity ◽  
Data Availability ◽  
Capital Expenditures ◽  
Cross Sectional ◽  
Quarterly Earnings ◽  
Asset Purchases ◽  
Earnings Thresholds

ABSTRACT This study examines whether managers use capital investment decisions, and the resulting depreciation expense, to achieve quarterly earnings thresholds. We also address whether these actions merely facilitate short-term earnings management or whether firms may trade off investment decisions to deliver earnings. We posit that managers may view capital expenditures as an alternative for earnings considerations because of the process for capital expenditure decision making and the accounting for these investments. Our findings suggest that managers use discretion over capital expenditures to achieve two well-documented earnings thresholds, but that these decisions largely reverse in the following quarter. We document the deferral of capital expenditures to avoid depreciation for industries where the median useful life averages approximately seven years. Cross-sectional tests also suggest that the use of capital expenditures for achieving thresholds varies depending upon the firm's capital intensity, remaining book value of assets, operating cash flow constraints, CEO horizon, and fiscal quarter. Data Availability: Data are available from the authors upon request.

Can Twitter Help Predict Firm-Level Earnings and Stock Returns?

2017 ◽  
Vol 93 (3) ◽  
pp. 25-57 ◽  
Author(s):  
Eli Bartov ◽  
Lucile Faurel ◽  
Partha S. Mohanram
Keyword(s):  
Stock Market ◽  
Stock Returns ◽  
Future Prospects ◽  
Traditional Media ◽  
Stock Trading ◽  
Firm Level ◽  
Quarterly Earnings ◽  
Announcement Returns ◽  
Twitter Activity ◽  
Original Information

ABSTRACT Prior research has examined how companies exploit Twitter in communicating with investors, and whether Twitter activity predicts the stock market as a whole. We test whether opinions of individuals tweeted just prior to a firm's earnings announcement predict its earnings and announcement returns. Using a broad sample from 2009 to 2012, we find that the aggregate opinion from individual tweets successfully predicts a firm's forthcoming quarterly earnings and announcement returns. These results hold for tweets that convey original information, as well as tweets that disseminate existing information, and are stronger for tweets providing information directly related to firm fundamentals and stock trading. Importantly, our results hold even after controlling for concurrent information or opinion from traditional media sources, and are stronger for firms in weaker information environments. Our findings highlight the importance of considering the aggregate opinion from individual tweets when assessing a stock's future prospects and value.

Statistically based quarterly earnings expectation models for nonseasonal firms

2007 ◽  
Vol 31 (1) ◽  
pp. 105-119 ◽  
Author(s):  
Kenneth S. Lorek ◽  
G. Lee Willinger ◽  
Allen W. Bathke
Keyword(s):  
Quarterly Earnings ◽  
Earnings Expectation
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