Market Underestimation of the Implications of R&D Increases for Future Earnings: The US Evidence

Material TypeArticleLanguageEnglish
TitleMarket Underestimation of the Implications of R&D Increases for Future Earnings: The US Evidence Author(S)Ashiq Ali (Author)
Abstract  This study shows that future abnormal returns to R&D increases are concentrated around subsequent earnings announcements. It further shows that market expectations, implied from stock prices, underestimate the future earnings benefits of increase in R&D. Finally, it documents that in their forecasts of future earnings ...Paginationp289–314
SubjectEconomicsDescriptorsEconomics
Journal TitleJournal of Business Finance & Accounting  
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