Liu, Yifang; Yang, Baochen; Su, Yunpeng - In: Journal of management science and engineering 8 (2023) 2, pp. 258-272
In this study, we show that changes in profitability predict a firm's stock returns and future profitability. We … construct three horizon-based profitability changes, including short-, medium-, and long-term changes. We find that the … predictive information for short-term changes in profitability is not subsumed by the profitability level in the Chinese stock …
