Open AccessThe Association Between Stock Returns And Dilutive Earnings Per Share Numbers: A Reexamination
Author(s) -
Scott I. Jerris
Publication year - 2011
Publication title -
journal of applied business research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.149
H-Index - 22
eISSN - 2157-8834
pISSN - 0892-7626
DOI - 10.19030/jabr.v7i1.6266
Subject(s) - earnings , earnings per share , price–earnings ratio , earnings yield , stock (firearms) , post earnings announcement drift , earnings response coefficient , economics , share price , econometrics , business , accounting , monetary economics , stock exchange , financial economics , finance , mechanical engineering , engineering
Since 1969 generally accepted accounting principles have required firms with complex capital structure to disclose both primary and fully diluted earnings per share numbers. The purpose of this paper is to investigate whether a hypothesized benchmark, raw (basic) earnings per share, is more associated with stock price movements than these two required dilutive earnings numbers. Results show that the benchmark earnings per share number is more associated with stock returns than either primary or fully-diluted.