Purpose – Prior studies provide mixed propositions on whether earnings levels or earnings changes provide the better … both earnings variables. This paper aims to compare the value relevance of earnings levels with that of earnings changes in … permanent and transitory components of earnings. Findings – The finding shows that the proxy ability of earnings changes for …

Purpose – Prior studies provide mixed propositions on whether earnings levels or earnings changes provide the better … both earnings variables. This paper aims to compare the value relevance of earnings levels with that of earnings changes in … permanent and transitory components of earnings. Findings – The finding shows that the proxy ability of earnings changes for …

relations mainly collected through the literature. Standard models such as earnings level and earnings changes, among others …

Lintner and Glauber (1967) essentially reported that earnings changes over time appear to be randomly distributed. More … study utilised the earningsâ€toâ€price ratio as the market's implicit forecast of future earnings changes. Their results … suggested that high E/P stocks tend to have relatively lower earnings changes whilst low E/P stocks tend to have higher earnings …