TY - JOUR
T1 - Relationship between abnormal earnings persistence, industry structure, and market share in Brazilian public firms
AU - Coelho, Antonio Carlos
AU - De Aguiar, Andson Braga
AU - Lopes, Alexsandro Broedel
PY - 2011/1/1
Y1 - 2011/1/1
N2 - In this study, Ohlson's Linear Information Dynamic (LID) is analyzed and the effect of other information on the abnormal earnings series is evaluated. The hypothesis that industry structure and market share have significant effects on abnormal earnings in the following period is tested, with Ohlson's LID persistence maintained. The results confirm the premise of LID in a sample of Brazilian public firms, considering all the statistical models. The hypothesis regarding market share is rejected as its effect on the degree of abnormal earnings persistence has no informational content, either directly or jointly. Finally, the results confirm that different industries affect abnormal earnings persistence differently. In view of these results, the research hypotheses are partially rejected. It is concluded that (a) industry contains other information that can impact abnormal earnings for the following period and (b) market share (in isolation and together with industry concentration) does not imply differentiated impacts on firms' abnormal earnings for the following period, and therefore do not reflect the presence of other information in Ohlson's Model (1995).
AB - In this study, Ohlson's Linear Information Dynamic (LID) is analyzed and the effect of other information on the abnormal earnings series is evaluated. The hypothesis that industry structure and market share have significant effects on abnormal earnings in the following period is tested, with Ohlson's LID persistence maintained. The results confirm the premise of LID in a sample of Brazilian public firms, considering all the statistical models. The hypothesis regarding market share is rejected as its effect on the degree of abnormal earnings persistence has no informational content, either directly or jointly. Finally, the results confirm that different industries affect abnormal earnings persistence differently. In view of these results, the research hypotheses are partially rejected. It is concluded that (a) industry contains other information that can impact abnormal earnings for the following period and (b) market share (in isolation and together with industry concentration) does not imply differentiated impacts on firms' abnormal earnings for the following period, and therefore do not reflect the presence of other information in Ohlson's Model (1995).
KW - Abnormal earnings persistence
KW - Emerging markets
KW - Industry structure
KW - Market share
KW - Ohlson's model
UR - http://www.scopus.com/inward/record.url?scp=78751546631&partnerID=8YFLogxK
U2 - 10.1590/S1807-76922011000100005
DO - 10.1590/S1807-76922011000100005
M3 - Article
AN - SCOPUS:78751546631
VL - 8
SP - 48
EP - 67
JO - Brazilian Administration Review
JF - Brazilian Administration Review
SN - 1807-7692
IS - 1
ER -