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Robert Freeman - The University of Texas at Austin, McCombs School of Business. Austin, TX, UNITED STATES

Robert Freeman

Department Chair, Professor | The University of Texas at Austin, McCombs School of Business

Austin, TX, UNITED STATES

Freeman, Robert N., Arthur Andersen & Co. Alumni Centennial Professor in Accounting

Areas of Expertise (3)

Financial Accounting

Capital Markets

Financial Reporting

Biography

Robert Freeman received his B.S. from the University of Tennessee, his M.A.S. from the University of Illinois, and his Ph.D. from The University of Texas at Austin. His research and teaching interests focus on financial accounting.

Education (3)

The University of Texas at Austin: PhD, Degree

University of Illinois: M.A.S., Degree

University of Tennessee: B.S., Degree

Articles (5)

Can Historical Returns - Earnings Relations Predict Price Responses to Earnings News?


Review of Quantitative Finance and Accounting

2011-07-01

The main purpose of this study is to examine the usefulness of pooled and firm-specific returns-earnings models in predicting price responses to future earnings news. The question addresses whether earnings response coefficients (ERCs) (i.e., slope coefficients obtained from regressions of market-adjusted returns on earnings surprises) are helpful in predicting price responses to future earnings surprises. In other words, are historical returns-earnings relations (as captured by ERCs) useful in predicting future returns-earnings relations?

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The Effect of Risk on Price Responses to Unexpected Earnings


Journal of Accounting, Auditing and Finance

2005-01-01

We investigate the possibility that earnings response coefficients (ERCs) are increasing in total risk (i.e., the sum of systematic and unsystematic risk). Our study extends the investigation of the role of risk in returns-earnings relations initiated by Easton and Zmijewski (1989) and Collins and Kothari (1989). Using the standard valuation model in which expected dividends are discounted at risk-adjusted rates, those studies show that ERCs should decline with systematic risk because the present value of a revision in expected dividends declines as systematic risk increases.

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Evidence that Analyst Following and Institutional Ownership Accelerate the Pricing of Future Earnings


Review of Accounting Studies

2005-10-01

We investigate the possibility that earnings response coefficients (ERCs) are increasing in total risk (i.e., the sum of systematic and unsystematic risk). Our study extends the investigation of the role of risk in returns-earnings relations initiated by Easton and Zmijewski (1989) and Collins and Kothari (1989). Using the standard valuation model in which expected dividends are discounted at risk-adjusted rates, those studies show that ERCs should decline with systematic risk because the present value of a revision in expected dividends declines as systematic risk increases.

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Why Do Large Firms' Prices Anticipate Earnings Earlier than Small Firms' Prices?


Contemporary Accounting Research

2010-01-01

This paper presents evidence that the positive association between firm size and price leads of earnings is not solely a function of private search incentives for firm-specific information. Specifically, we find that small-firm prices also lag large-firm prices with respect to industry-wide information. Our empirical analysis extends Collins, Kothari, and Rayburn 1987 and Freeman 1987, who document that security-price leads of earnings are positively associated with market capitalization.

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Discussion of 'Analysts' Interpretation and Investors' Valuation of Tax Carryforwards'


Contemporary Accounting Research

1999-04-20

Volume 16, Issue 1, pages 35–38.

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