{"id":2527,"date":"2026-08-16T13:10:38","date_gmt":"2026-08-16T10:10:38","guid":{"rendered":"https:\/\/sites.uwasa.fi\/mfjuva\/?page_id=2527"},"modified":"2026-08-16T13:10:38","modified_gmt":"2026-08-16T10:10:38","slug":"earnings-quality","status":"publish","type":"page","link":"https:\/\/sites.uwasa.fi\/mfjuva\/all-issues\/earnings-quality\/","title":{"rendered":""},"content":{"rendered":"

Earnings Quality and Book-to-Market in the Cross Section of Expected Returns<\/h2>\n

Multinational Finance Journal, 2019, vol. 23, no. 3\/4, pp. 169\u2013210<\/p>\n

\"\"<\/a><\/p>\n

Vasiliki Athanasakou<\/strong>, Saint Mary\u2019s University, Canada<\/em><\/p>\n

George Athanassakos<\/strong>, University of Western Ontario, Canada<\/em><\/p>\n

 <\/p>\n

Abstract:<\/strong><\/h3>\n

The purpose of this paper is to examine whether earnings quality contributes to the book-to- market\u2019s predictive power in the cross section of stock returns. Earnings quality is embedded in the value-growth effect given that retained earnings is a key part of the book value of equity. Earnings quality reflects the effects of managerial discretion on reported earnings, which has been shown to be associated with both risk and behavioral biases in asset pricing. Our results affirm the existence of a value premium and show that the value premium is more pronounced within poor earnings quality stocks. Moreover, we find that poor earnings quality contributes to the value premium mainly through the pricing of growth stocks. Our results suggest that the quality of reported earnings has an incremental role in shaping expected returns of value versus growth stocks.<\/p>\n

 <\/p>\n

Keywords:<\/strong><\/h3>\n

Value premium; earnings quality; earnings management; asset pricing.<\/p>\n

 <\/p>\n

Citation (APA):<\/strong><\/h3>\n

Athanasakou, V., & Athanassakos, G. (2019). Earnings quality and book-to-market in the cross section of expected returns. Multinational Finance Journal, 23<\/em>(3\/4), 169\u2013210.<\/p>\n

Citation (Harvard):<\/strong><\/h3>\n

Athanasakou, V. and Athanassakos, G., 2019. Earnings Quality and Book-to-Market in the Cross Section of Expected Returns. Multinational Finance Journal<\/em>, 23(3\/4), pp.169\u2013210.<\/p>\n","protected":false},"excerpt":{"rendered":"

Earnings Quality and Book-to-Market in the Cross Section of Expected Returns Multinational Finance Journal, 2019, vol. 23, no. 3\/4, pp. 169\u2013210 Vasiliki Athanasakou, Saint Mary\u2019s University, Canada George Athanassakos, University of Western Ontario, Canada   Abstract: The purpose of this paper is to examine whether earnings quality contributes to the book-to- market\u2019s predictive power in […]<\/p>\n","protected":false},"author":621,"featured_media":0,"parent":221,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_acf_changed":false,"footnotes":""},"class_list":["post-2527","page","type-page","status-publish","hentry"],"acf":[],"_links":{"self":[{"href":"https:\/\/sites.uwasa.fi\/mfjuva\/wp-json\/wp\/v2\/pages\/2527"}],"collection":[{"href":"https:\/\/sites.uwasa.fi\/mfjuva\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/sites.uwasa.fi\/mfjuva\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/sites.uwasa.fi\/mfjuva\/wp-json\/wp\/v2\/users\/621"}],"replies":[{"embeddable":true,"href":"https:\/\/sites.uwasa.fi\/mfjuva\/wp-json\/wp\/v2\/comments?post=2527"}],"version-history":[{"count":1,"href":"https:\/\/sites.uwasa.fi\/mfjuva\/wp-json\/wp\/v2\/pages\/2527\/revisions"}],"predecessor-version":[{"id":2528,"href":"https:\/\/sites.uwasa.fi\/mfjuva\/wp-json\/wp\/v2\/pages\/2527\/revisions\/2528"}],"up":[{"embeddable":true,"href":"https:\/\/sites.uwasa.fi\/mfjuva\/wp-json\/wp\/v2\/pages\/221"}],"wp:attachment":[{"href":"https:\/\/sites.uwasa.fi\/mfjuva\/wp-json\/wp\/v2\/media?parent=2527"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}