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- Jolly, Nicholas A. & Wagner, Kathryn L. (2023): Work-limiting disabilities and earnings volatility
This paper examines how the onset of a work-limiting disability influences male earnings volatility as measured by the variance of transitory earnings. ... Upon onset, earnings volatility increases significantly, and does not return to pre-onset levels until at least five years after the last reported disability. Additional results show that earnings volatility has increased since 1970 for both disabled and non-disabled men. However, the trend in volatility is steeper for those who suffer from a disability. Despite this steeper trend, disability's contribution to the total variance of earnings has remained constant over time at roughly 15%.
RePEc:eee:labeco:v:81:y:2023:i:c:s0927537123000088 Save to MyIDEAS - Dichev, Ilia D. & Tang, Vicki Wei (2009): Earnings volatility and earnings predictability
Survey evidence indicates widely held managerial beliefs that earnings volatility is negatively related to earnings predictability. In addition, existing research suggests that earnings volatility is determined by economic and accounting factors, and both of these factors reduce earnings predictability. We find that the consideration of earnings volatility brings substantial improvements in the prediction of both short- and long-term earnings. Conditioning on volatility information also allows one to identify systematic errors in analyst forecasts, which implies that analysts do not fully understand the implications of earnings volatility for earnings predictability.
RePEc:eee:jaecon:v:47:y:2009:i:1-2:p:160-181 Save to MyIDEAS - de Haan, Jakob & Poghosyan, Tigran (2012): Size and earnings volatility of US bank holding companies
We examine whether bank earnings volatility depends on bank size. Using quarterly data for bank holding companies in the United States for the period 1995Q1–2010Q3 and controlling for the quality of management, leverage, and diversification, we find that bank size reduces return volatility. However, the effect is non-linear: when bank size exceeds a certain threshold (about US$5billion) size is positively related to earnings volatility. The recent financial crisis decreased the threshold beyond which the impact of size on volatility turns positive.
RePEc:eee:jbfina:v:36:y:2012:i:11:p:3008-3016 Save to MyIDEAS - Edmonds, Christopher T. & Edmonds, Jennifer E. & Leece, Ryan D. & Vermeer, Thomas E. (2015): Do risk management activities impact earnings volatility?
This study investigates whether changes in the quality of risk management are associated with changes in earnings volatility. Our findings are consistent with firms achieving lower earnings volatility by implementing higher quality risk management systems.
RePEc:eee:reacre:v:27:y:2015:i:1:p:66-72 Save to MyIDEAS - Slavko Sodan (2019): Fair Value Hierarchy And Earnings Volatility
The aim of this paper is to investigate the relation between the use of Level 2 and Level 3 fair value inputs (i.e. mark-to-model) and earnings volatility. ... This estimation error in the measurement of assets and liabilities can be a source of additional financial statement volatility. Accordingly, when assets and liabilities are volatile, so are earnings. Most prior studies were mainly focused on the impact of the fair value hierarchy on the earnings value relevance. However, there is a lack of reliable empirical evidence on fair value hierarchy effects on earnings volatility and this study tries to fill that void.
RePEc:avo:emipdu:v:28:y:2019:i:2:p:567-577 Save to MyIDEAS - Mahshid Shahchera & Fatemeh Noorbakhsh & Nicholas Tsounis & Aspasia Vlachvei (2018): The Dynamic Effect of Bank Size on Earnings Volatility in Iranian Banking System
Earnings volatility has an effect either through its relation to the discount rate or expected cash flows (earnings) in assessment models. Most of the studies have been focused on the relationship between cost of capital and earnings volatility. ... We find that bank size is negatively related to earnings volatility; therefore, larger banks have lower earnings volatility compared to smaller banks. We use dummy variables in order to consider the relationship between bank type and earnings volatility. We identify different results according to different types of banks because state banks and specialized banks have positive impact on earnings volatility, while private and privatized banks have negative effects on earnings volatility.
RePEc:spr:prbchp:978-3-319-70055-7_24 Save to MyIDEAS - Joong-Seok Cho (2022): The Effect of Earnings Volatility on Stock Price Delay
In this study, I examine the relation between earnings volatility and stock price response delay. ... For more volatile earnings and earnings components, it is more complex for investors to reliably understand and impound information into stock prices. ... I use five-year rolling standard deviations of earnings and components for earnings and components volatility measures. As an additional earnings volatility measure, I adopt the degree to which earnings volatility deviates from cash flow volatility. ... Among earnings and their components, the effect of cash flow volatility is the most influential.
RePEc:aic:saebjn:v:69:y:2022:i:1:p:99-110:n:222 Save to MyIDEAS - Joong-Seok Cho (2022): The Effect of Earnings Volatility on Stock Price Delay
In this study, I examine the relation between earnings volatility and stock price response delay. ... For more volatile earnings and earnings components, it is more complex for investors to reliably understand and impound information into stock prices. ... I use five-year rolling standard deviations of earnings and components for earnings and components volatility measures. As an additional earnings volatility measure, I adopt the degree to which earnings volatility deviates from cash flow volatility. ... Among earnings and their components, the effect of cash flow volatility is the most influential.
RePEc:aic:saebjn:v:69:y:2022:i:1:p:99-110:n:2 Save to MyIDEAS - Judith M. Delaney & Paul J. Devereux (2017): More Education, Less Volatility? The Effect of Education on Earnings Volatility over the Life Cycle
Much evidence suggests that having more education leads to higher earnings in the labor market. However, there is little evidence about whether having more education causes employees to experience lower earnings volatility or shelters them from the adverse effects of recessions. We use a large British administrative panel data set to study the impact of the 1972 increase in compulsory schooling on earnings volatility over the life cycle. Our estimates suggest that men exposed to the law change subsequently had lower earnings variability and less pro-cyclical earnings. However, there is little evidence that education affects earnings volatility of older men.
RePEc:ucn:wpaper:201723 Save to MyIDEAS - Delaney, Judith M. & Devereux, Paul J. (2017): More Education, Less Volatility? The Effect of Education on Earnings Volatility over the Life Cycle
Much evidence suggests that having more education leads to higher earnings in the labor market. However, there is little evidence about whether having more education causes employees to experience lower earnings volatility or shelters them from the adverse effects of recessions. We use a large British administrative panel data set to study the impact of the 1972 increase in compulsory schooling on earnings volatility over the life cycle. Our estimates suggest that men exposed to the law change subsequently had lower earnings variability and less pro-cyclical earnings. However, there is little evidence that education affects earnings volatility of older men.
RePEc:iza:izadps:dp11107 Save to MyIDEAS