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Keywords: systematic risk
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Journal Articles
Journal of Financial Reporting (2016) 1 (1): 15–32.
Published: 01 March 2016
... earnings will reflect future cash flow to a greater (lesser) extent in bad states (good states) when that cash flow is anticipated to be low (high). Importantly, we also show that the asymmetry in reporting generates asymmetry in the firm's systematic risk. When a firm's earnings reflect future cash flow...