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Future Business Journal

Table 7 Regression results using control variables

From: An empirical study of the earnings–returns association: an evidence from China’s A-share market

 

Dependent variable

Model (4)

Model (5)

Model (6)

EPS/Pt−1

0.984***

 

0.990***

 

(0.064)

 

(0.088)

ΔEPS/Pt−1

 

0.470***

− 0.006

  

(0.044)

(0.061)

Size

− 0.587***

− 0.571***

− 0.587***

 

(0.026)

(0.026)

(0.026)

Leverage

− 0.007*

− 0.009**

− 0.007*

 

(0.004)

(0.004)

(0.004)

Growth

− 0.00001***

− 0.00001***

− 0.00001***

 

(0.00000)

(0.00000)

(0.00000)

Observations

20,993

20,993

20,993

R2

0.039

0.032

0.039

Adjusted R2

− 0.115

− 0.123

− 0.115

F statistic

183.071*** (df = 4; 18,089)

150.567*** (df = 4; 18,089)

146.450*** (df = 5; 18,088)

  1. This panel shows the regression results of regression results using control variables. The dependent variables are returns. The EPS/Pt−1 refers to earnings level variable, and ΔEPS/Pt−1 refers to the change in earnings, Pt−1 refers to the market price at the beginning of the period of each year, as all sample companies end their fiscal year on 31/12 each year. Leverage is measured as total liabilities divided by total assets. Size, this measures the company’s natural logarithm of total assets at the end of the previous fiscal year. Growth variable natural logarithm operating revenue. Standard errors in parentheses
  2. ***p < 0.01; **p < 0.05; *p < 0.1
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