Earnings Persistence and Market Reaction: Evidence from Korea


  •  Hong-Bok, Ahn    
  •  Gee-Jung, Kwon    

Abstract

This paper investigates the persistence of earnings and market reaction in Korean stock markets over the period
of 2000-2008. The empirical results of this paper show that Korean stock market has a high level of earnings
persistence and this is more attributed to cash flows than accruals. The study also suggests that Korean stock
market participants usually react more on cash flows than accruals.


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