Intergenerational Earnings Persistence in Italy between Actual Father–Son Pairs Accounting for Lifecycle and Attenuation Bias

2020 ◽  
Author(s):  
Francesco Bloise ◽  
Michele Raitano
Keyword(s):  
Earnings Persistence ◽  
Attenuation Bias

Women’s Education May Be Even Better Than We Thought: Estimating the Gains from Education When Schooling Ain’t Learning

2020 ◽  
Author(s):  
Michelle Kaffenberger ◽  
Lant Pritchett
Keyword(s):  
Child Mortality ◽  
Women's Education ◽  
Basic Education ◽  
Women's Empowerment ◽  
Women’S Empowerment ◽  
Life Outcomes ◽  
Primary Schooling ◽  
The Impact ◽  
Financial Practices ◽  
Attenuation Bias

Women’s schooling has long been regarded as one of the best investments in development. Using two different cross-nationally comparable data sets which both contain measures of schooling, assessments of literacy, and life outcomes for more than 50 countries, we show the association of women’s education (defined as schooling and the acquisition of literacy) with four life outcomes (fertility, child mortality, empowerment, and financial practices) is much larger than the standard estimates of the gains from schooling alone. First, estimates of the association of outcomes with schooling alone cannot distinguish between the association of outcomes with schooling that actually produces increased learning and schooling that does not. Second, typical estimates do not address attenuation bias from measurement error. Using the new data on literacy to partially address these deficiencies, we find that the associations of women’s basic education (completing primary schooling and attaining literacy) with child mortality, fertility, women’s empowerment and the associations of men’s and women’s basic education with positive financial practices are three to five times larger than standard estimates. For instance, our country aggregated OLS estimate of the association of women’s empowerment with primary schooling versus no schooling is 0.15 of a standard deviation of the index, but the estimated association for women with primary schooling and literacy, using IV to correct for attenuation bias, is 0.68, 4.6 times bigger. Our findings raise two conceptual points. First, if the causal pathway through which schooling affects life outcomes is, even partially, through learning then estimates of the impact of schooling will underestimate the impact of education. Second, decisions about how to invest to improve life outcomes necessarily depend on estimates of the relative impacts and relative costs of schooling (e.g., grade completion) versus learning (e.g., literacy) on life outcomes. Our results do share the limitation of all previous observational results that the associations cannot be given causal interpretation and much more work will be needed to be able to make reliable claims about causal pathways.

An Analysis of the Sources of Value Loss Following Financial Restatements

2021 ◽  
pp. 0148558X2198991
Author(s):  
Philip K. Hong ◽  
Jaywon Lee ◽  
Sang-Hyun Park ◽  
Sukesh Patro
Keyword(s):  
Stock Returns ◽  
Cash Flow ◽  
Discount Rate ◽  
Stock Price ◽  
Cash Flows ◽  
Financial Fraud ◽  
Earnings Persistence ◽  
Flow Component ◽  
Financial Restatements ◽  
Value Loss

We decompose the total value loss around firms’ announcements of financial restatements into components arising from investors’ revisions in cash flows and discount rates. First, relative to population benchmarks, restatements represent circumstances in which the cash flow component becomes more important in explaining valuations. While we find significant contributions from both sources, with the cash flow component explaining more than 33% of the variation in stock returns surrounding restatement announcements, this component explains only 13% to 22% in comparable non-restating firms. When restatements are caused by underlying financial fraud, the discount rate impact becomes more important, explaining about 88% of return variation. On the contrary, the cash flow impact is relatively larger for firms with higher earnings persistence or restatements associated with errors. Our decomposition of the value loss helps explain returns in the post-announcement period. Firms with a higher relative discount rate impact experience a significant downward stock price drift after the initial announcement-related price decline. For firms with a higher relative cash flow impact, the evidence suggests the initial impact of the restatement announcement is more complete with no subsequent drift pattern. Our findings close gaps in the evidence on financial restatements and extend the literature on the drivers of stock price movements.

Earnings persistence and schooling returns

2013 ◽  
Vol 118 (3) ◽  
pp. 482-484 ◽  
Author(s):  
Corrado Andini
Keyword(s):  
Earnings Persistence

scholarly journals Do Brands Matter in Unlisted Firms? An Empirical Study of the Association between Brand Equity and Financial Performance

2018 ◽  
Vol 8 (4) ◽  
pp. 65
Author(s):  
Anne Schmitz ◽  
Nieves Villaseñor-Román
Keyword(s):  
Strategic Planning ◽  
Empirical Study ◽  
Financial Performance ◽  
Brand Equity ◽  
Brand Management ◽  
Earnings Persistence ◽  
Financial Indicators ◽  
Future Earnings ◽  
Measures Of Performance ◽  
Unlisted Firms

In spite of the importance of the brand management in marketing studies and practice, there is a scarcity of prior research on the links between brand equity and financial performance, particularly in unlisted (unquoted) firms. The study contributes to prior research along a number of dimensions. It provides evidence on the relevance of brands for unlisted firms of several industries, by showing that brand equity is associated with financial performance even in non-quoted firms without world-recognized brands. Second, the study analyzes the association between brands and accounting-based measures of performance, across different windows and financial indicators. Finally, the evidence on earnings persistence is particularly relevant, as it potentially sheds light on the existing debate on the association between brand equity and stock markets. To the extent that firms with greater brand equity have more persistent earnings, current earnings contain greater information about future earnings, which show the relevance of brand management in the strategic planning of unlisted firms.

Sign in / Sign up

Export Citation Format

Share Document