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dc.contributor.authorRouen, Ethan
dc.contributor.authorSo, Eric C.
dc.contributor.authorWang, Charles
dc.date.accessioned2022-12-21T11:11:36Z
dc.date.issued2021-12
dc.identifier.citationRouen, Ethan, Eric C. So, and Charles C.Y. Wang. "Core Earnings: New Data and Evidence." Journal of Financial Economics 142, no. 3 (December 2021): 1068–1091.en_US
dc.identifier.issn0304-405Xen_US
dc.identifier.urihttps://nrs.harvard.edu/URN-3:HUL.INSTREPOS:37373901*
dc.description.abstractUsing a novel dataset, we show that components of firms' GAAP earnings stemming from ancillary business activities or transitory shocks are significant in frequency and magnitude. These components have grown over time and are dispersed across various sections of the 10-K. Excluding them from GAAP earnings yields a core earnings measure that distinguishes between the recurring and non-recurring components of net income and forecasts future performance. Analysts and market participants are slow to impound these earnings components' implications, particularly the amounts disclosed in footnotes. Trading strategies that exploit non-core earnings produce abnormal returns of 8% per year.en_US
dc.language.isoen_USen_US
dc.publisherElsevier BVen_US
dc.relation.isversionofhttps://doi.org/10.1016/j.jfineco.2021.04.025en_US
dash.licenseOAP
dc.subjectStrategy and Managementen_US
dc.subjectEconomics and Econometricsen_US
dc.subjectFinanceen_US
dc.subjectAccountingen_US
dc.titleCore Earnings: New Data and Evidenceen_US
dc.typeJournal Articleen_US
dc.description.versionAccepted Manuscripten_US
dc.relation.journalJournal of Financial Economicsen_US
dash.depositing.authorWang, Charles
dc.date.available2022-12-21T11:11:36Z
dc.identifier.doi10.1016/j.jfineco.2021.04.025
dash.source.volume142en_US
dash.source.page1068-1091en_US
dash.source.issue3en_US
dash.contributor.affiliatedRouen, Ethan
dash.contributor.affiliatedWang, Charles


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