This course examines why stock prices react when firms announce their earnings, and why certain trends in industry earnings affect stock prices of many firms in that industry. Under highly stylized GAAP, abnormal accounting earnings can be discounted to estimate share price, linking accounting policy choices, abnormal earnings, and stock price valuation.
This course examines why stock prices react when firms announce their earnings, and why certain trends in industry earnings affect stock prices of many firms in that industry. Under highly stylized GAAP, abnormal accounting earnings can be discounted to estimate share price, linking accounting policy choices, abnormal earnings, and stock price valuation.
