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Alexandru-Septimiu Rif
Last Name
Rif
First name
Alexandru-Septimiu
Email
alexandru.rif@unisg.ch
Phone
+41 71 224 2311
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1 - 7 of 7
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PublicationThe Shortcomings of Segment Reporting and their Impact on Analysts’ Earnings ForecastsIn this paper, we deliver US-sample based evidence that suggests that segment reporting under the “management approach” of ASC 280 (SFAS 131) biases analysts’ earnings per share (EPS) forecasts. We show that the error in EPS forecasts corresponds to a profitability “gap” between profitability aggregated from segment reporting and profitability computed from consolidated financial statements. In particular, the forecast error is associated with the profitability gap–and even its direction–when reported segments lack major profitability components such as assets, revenue, or operating income. Furthermore, we find that the EPS forecast error increases with an increased segment split when controlling for diversification, which suggests that disaggregation per se does not improve the ability of security analysts to forecast earnings. Our panel consists of a sample of 591 US listed companies and covers the period 2009 to 2016.Type: journal article
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PublicationThe Roadmap to Effective Segment Reporting, At the Core of Value DiscoveryCurrent segment reporting does not assist investors in their use of valuation models. Investors would like more segment-level information. These are key findings of the Post-Implementation Review (PIR) of IFRS 8 (2013) and PIR SFAS 131 (2012). They highlight that the development and improvement of segment reporting is long overdue. Although it is as a critical cornerstone for forecasting future firm performance and firm value, the current status quo of segment reporting does not enable investors to perform segment analysis with a focus on operating activities,profitability, and growth. In order to address key concerns of the PIR on segment reporting,the IASB proposes the disclosure of additional line items to the segment statements (IFRS 8 Staff Paper, October 2016). We appreciate the IASB’s initiative to improve segment reporting.At the same time, we would like to emphasize that segment reporting from the investors’perspective can only be improved if it aims to identify value drivers, thus sharpening the focuson operations.Type: journal articleJournal: IRZ: Zeitschrift für internationale RechnungslegungIssue: 4
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PublicationType: conference paper
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PublicationThe Shortcomings of Segment Reporting and their Impact on Analysts' Earnings Forecasts( 2020-08-11)In this paper, we deliver US-sample based evidence suggesting that segment reporting under the "management approach" of ASC 280 (SFAS 131) biases analysts' earnings per share (EPS) forecasts. We show that the error in EPS forecasts corresponds to a profitability "gap" between profitability aggregated from segment reporting and profitability computed from consolidated financial statements. We show that the forecast error is associated with the profitability gap when reported segments lack major profitability components such as assets, revenue, or operating income. Furthermore, we end that the EPS forecast error increases with an increased segment split when controlling for diversification, suggesting that disaggregation per se does not improve the ability of equity analysts to forecast earnings. Our panel consists of a sample of 591 US listed companies and covers the period 2009 to 2016.Type: conference paper
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PublicationType: conference paper
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PublicationShort-term stock price reversals after extreme downward price movements( 2021)We studied the intraday effects of return overreactions around extreme negative one-minute interval returns of Nasdaq100 constituents based on nanosecond data. An extreme negative one-minute interval return is defined as the lowest return that occurs once in 1,000 one-minute intervals. We document that 31% of such an extreme one-minute interval's return is reversed in the subsequent trading minute. The relative magnitude of the reversal after extreme negative one-minute interval returns is particularly high for the 20% most liquid and the 20% largest firms of our sample.Type: forthcomingJournal: Quarterly Review of Economics and Finance