{"id":{"repo_id":"uiuc","oai_identifier":"oai:www.ideals.illinois.edu:2142/71401"},"canonical_url":"https://search.dev.ndltd.org/etd/uiuc/oai:www.ideals.illinois.edu:2142/71401","repository":{"repo_id":"uiuc","name":"University of Illinois - Urbana-Champaign","base_url":"https://www.ideals.illinois.edu/oai-pmh"},"display":{"title":"The Differential Effects of Unexpected Permanent and Transitory Earnings Changes on Equity Returns","abstract":"This study characterizes the new information contained in an earnings announcement based on the degree to which the new information perturbs expectations of earnings. New information is categorized as either permanent or transitory, depending on the degree to which the new information is associated with changes in earnings expectations. The differential impact of the categories of new information on a firm's value is modeled, and the effect of nonrecurring items on earnings expectations is studied. Hypotheses are formulated from the analysis. A market-based research design is constructed to test the hypotheses. The design uses standardized abnormal returns from a market model to surrogate changes in firm value, and forecasts from the Value Line Investment Survey to proxy market earnings expectations. Parametric and nonparametric tests are utilized in testing the hypotheses. The results of the empirical tests provide evidence that unexpected changes in permanent components of earnings have a greater impact on firm value than unexpected changes in transitory components. The results also support the hypothesis that revisions in market expectations of earnings are greater for firms which disclose earnings figures which contain nonrecurring items than for other firms.","abstract_html":"This study characterizes the new information contained in an earnings announcement based on the degree to which the new information perturbs expectations of earnings. New information is categorized as either permanent or transitory, depending on the degree to which the new information is associated with changes in earnings expectations. The differential impact of the categories of new information on a firm's value is modeled, and the effect of nonrecurring items on earnings expectations is studied. Hypotheses are formulated from the analysis. A market-based research design is constructed to test the hypotheses. The design uses standardized abnormal returns from a market model to surrogate changes in firm value, and forecasts from the Value Line Investment Survey to proxy market earnings expectations. Parametric and nonparametric tests are utilized in testing the hypotheses. The results of the empirical tests provide evidence that unexpected changes in permanent components of earnings have a greater impact on firm value than unexpected changes in transitory components. The results also support the hypothesis that revisions in market expectations of earnings are greater for firms which disclose earnings figures which contain nonrecurring items than for other firms.","abstract_has_math":false,"creators":["Regier, Philip Roger"],"institution":"University of Illinois at Urbana-Champaign","degree_name":"Ph.D.","degree_level":"Dissertation","degree_discipline":"Accountancy","degree_department":null,"school":null,"contributors":[],"advisors":[],"committee_chairs":[],"committee_members":[],"year":2014,"date_issued":"2014-12-16T06:41:19Z","date_published":"2014-12-16T06:41:19Z","updated_at":"2026-07-22T22:26:04Z","subjects":["Business Administration, Accounting"],"languages":[],"rights":[],"rights_urls":[],"identifier_entries":[{"key":"dc:identifier","label":"Identifier","values":["(UMI)AAI8711859"],"render_values":[{"text":"(UMI)AAI8711859","href":null,"code":true}]}]},"links":{"outbound_url":"http://hdl.handle.net/2142/71401","outbound_label":"Handle","outbound_source":"dc:identifier"},"metadata_groups":[{"id":"people","label":"People","entries":[{"key":"dc:creator","label":"Author","values":["Regier, Philip Roger"]}]},{"id":"academic_context","label":"Academic Context","entries":[{"key":"dc:date","label":"Dc Date","values":["2014-12-16T06:41:19Z","10000-01-01","1987"]},{"key":"dc:type","label":"Dc Type","values":["text"]},{"key":"thesis:degree_discipline","label":"Discipline","values":["Accountancy"]},{"key":"thesis:degree_level","label":"Degree Level","values":["Dissertation"]},{"key":"thesis:degree_name","label":"Degree Name","values":["Ph.D."]},{"key":"thesis:institution_name","label":"Thesis Institution Name","values":["University of Illinois at Urbana-Champaign"]}]},{"id":"subjects_keywords","label":"Subjects and Keywords","entries":[{"key":"dc:subject","label":"Dc Subject","values":["Business Administration, Accounting"]}]},{"id":"identifiers","label":"Identifiers","entries":[{"key":"dc:identifier","label":"Identifier","values":["http://hdl.handle.net/2142/71401","(UMI)AAI8711859"]}]},{"id":"additional","label":"Additional Metadata","entries":[{"key":"dc:description","label":"Description","values":["This study characterizes the new information contained in an earnings announcement based on the degree to which the new information perturbs expectations of earnings. New information is categorized as either permanent or transitory, depending on the degree to which the new information is associated with changes in earnings expectations. The differential impact of the categories of new information on a firm's value is modeled, and the effect of nonrecurring items on earnings expectations is studied. Hypotheses are formulated from the analysis. A market-based research design is constructed to test the hypotheses. The design uses standardized abnormal returns from a market model to surrogate changes in firm value, and forecasts from the Value Line Investment Survey to proxy market earnings expectations. Parametric and nonparametric tests are utilized in testing the hypotheses. The results of the empirical tests provide evidence that unexpected changes in permanent components of earnings have a greater impact on firm value than unexpected changes in transitory components. The results also support the hypothesis that revisions in market expectations of earnings are greater for firms which disclose earnings figures which contain nonrecurring items than for other firms.","Made available in DSpace on 2014-12-16T06:41:19Z (GMT). No. of bitstreams: 1 8711859.pdf: 3421172 bytes, checksum: b2857c0690d8391ebda0052b13de490e (MD5) Previous issue date: 1987","Embargo set by: Seth Robbins for item 71567 Lift date: Forever Reason: Restricted to the U of I community idenfinitely during batch ingest of legacy ETDs","Restricted to the U of I community idenfinitely during batch ingest of legacy ETDs","U of I Only","102 p.","Thesis (Ph.D.)--University of Illinois at Urbana-Champaign, 1987."]},{"key":"dc:title","label":"Title","values":["The Differential Effects of Unexpected Permanent and Transitory Earnings Changes on Equity Returns"]}]}],"canonical_facts":{"dc:creator":["Regier, Philip Roger"],"dc:date":["2014-12-16T06:41:19Z","10000-01-01","1987"],"dc:description":["This study characterizes the new information contained in an earnings announcement based on the degree to which the new information perturbs expectations of earnings. New information is categorized as either permanent or transitory, depending on the degree to which the new information is associated with changes in earnings expectations. The differential impact of the categories of new information on a firm's value is modeled, and the effect of nonrecurring items on earnings expectations is studied. Hypotheses are formulated from the analysis. A market-based research design is constructed to test the hypotheses. The design uses standardized abnormal returns from a market model to surrogate changes in firm value, and forecasts from the Value Line Investment Survey to proxy market earnings expectations. Parametric and nonparametric tests are utilized in testing the hypotheses. The results of the empirical tests provide evidence that unexpected changes in permanent components of earnings have a greater impact on firm value than unexpected changes in transitory components. The results also support the hypothesis that revisions in market expectations of earnings are greater for firms which disclose earnings figures which contain nonrecurring items than for other firms.","Made available in DSpace on 2014-12-16T06:41:19Z (GMT). No. of bitstreams: 1 8711859.pdf: 3421172 bytes, checksum: b2857c0690d8391ebda0052b13de490e (MD5) Previous issue date: 1987","Embargo set by: Seth Robbins for item 71567 Lift date: Forever Reason: Restricted to the U of I community idenfinitely during batch ingest of legacy ETDs","Restricted to the U of I community idenfinitely during batch ingest of legacy ETDs","U of I Only","102 p.","Thesis (Ph.D.)--University of Illinois at Urbana-Champaign, 1987."],"dc:identifier":["http://hdl.handle.net/2142/71401","(UMI)AAI8711859"],"dc:subject":["Business Administration, Accounting"],"dc:title":["The Differential Effects of Unexpected Permanent and Transitory Earnings Changes on Equity Returns"],"dc:type":["text"],"thesis:degree_discipline":["Accountancy"],"thesis:degree_level":["Dissertation"],"thesis:degree_name":["Ph.D."],"thesis:institution_name":["University of Illinois at Urbana-Champaign"]},"updated_at":"2026-07-22T22:26:04Z"}