relatively slow in recognizing good news in earnings. 9 Econometrics of Ray Ball, S. P. Analysis of the This paper only proposes The researchers Main conclusion of the Basu Kothari, Valeri econometrics of a model. No tests are present a model of the paper is that the Asymmetric Nikolaev 2009 the Basu done. prices leading market to book ratio Timeliness asymmetric First Draft : May 2006, earnings to analyze does not per se Coefficient and timeliness Current version April the econometrics of determine The Accounting coefficient. The 2009 the Basu model asymmetric Conservatism. analysis (1997). The analysis timeliness; its effect (Working addresses the addresses conceptual arises because it is Paper) conceptual and and econometric correlated with the econometric challenges to the amount of price challenges to the measure raised in the revision associated measure raised in recent literature and with revisions in the recent show that the Basu “unbooked” literature. measure is unbiased components such as under the null growth option hypothesis of zero expectations. asymmetry. In this paper they demonstrate that any differential persistence in economic gains and losses does not explain the Basu coefficient and an extension of the Roychowdhurry and Watts (2007) analyze is made.
relatively slow in recognizing good news in earnings. 9 Econometrics of the Basu Asymmetric Timeliness Coefficient and The Accounting Conservatism. (Working Paper) Ray Ball, S. P. Kothari, Valeri Nikolaev 2009 Analysis of the econometrics of the Basu asymmetric timeliness coefficient. The analysis addresses the conceptual and econometric challenges to the measure raised in the recent literature. This paper only proposes a model. No tests are done. First Draft : May 2006, Current version April 2009 The researchers present a model of prices leading earnings to analyze the econometrics of the Basu model (1997). The analysis addresses conceptual and econometric challenges to the measure raised in the recent literature and show that the Basu measure is unbiased under the null hypothesis of zero asymmetry. In this paper they demonstrate that any differential persistence in economic gains and losses does not explain the Basu coefficient and an extension of the Roychowdhurry and Watts (2007) analyze is made. Main conclusion of the paper is that the market to book ratio does not per se determine asymmetric timeliness; its effect arises because it is correlated with the amount of price revision associated with revisions in “unbooked” components such as growth option expectations.