Volume 6, Numbers 3 & 4 / September/December , Pages 131-258
The Information Content of Earnings on Stock Prices: The Kuwait Stock Exchange
Multinational Finance Journal, 2002, vol. 6, no. 3&4, pp. 197-221
Rashid Al-Qenae , University of Kuwait, Kuwait    Corresponding Author
Carmen Li , University of Essex, UK
Bob Wearing , University of Essex, UK

This paper investigates the incremental information content of earnings and other macroeconomic variables for share prices within the ‘prices leading earnings’ framework. We find evidence supporting the phenomenon of ‘prices leading earnings’ for the Kuwait Stock Exchange (KSE) after controlling for basic macroeconomic indicators. That is, the estimated earnings response coefficient is found to be sensitive (and significant) to the leading periods and it increased when more leading periods were included. The results suggest that prices anticipate earnings and hence provide useful information to KSE investors

Keywords : earnings response coefficients; Kuwait Stock Exchange; price-leading earnings
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