This paper evaluates the hypothesis that the difference between reported earnings and permanent earnings approximates zero, on average. We measure a firm's permanent earnings using its stock price, and the short term interest rate determines the permanent earnings to price relation. The...

The paper examines three benchmark earnings concepts: (i) permanent earnings with the cost-of-equity determining the capitalization, (ii) permanent earnings with the risk-free rate determining the capitalization, and (iii) economic earnings (Hicks's concept). The concepts can be measured...

This article provides an empirical analysis of the interaction between exchange rate fluctuations and equity prices in three European emerging financial markets, Greece, the Czech Republic, and Hungary. While theoretical considerations suggest that corporate value, especially for firms involved...

This paper examines the effects of corporate income taxation on equity prices. There is a current European-wide debate between advocates of tax harmonization and supporters of tax competition. Due to that, the level of importance of corporate taxes on the market value of European firms gathers...