matrix form to limit the unidentified and over identified. The inferential statistics would apply the reduced form equations and save the residuals to create series of fitted values by constructing new

, firm age, firm size, stock returns, and capital investment). The negative residuals were multiplied by negative one. The lower values→ lower degrees of underinvestment. https://go.microsoft.com/fwlink

vector used in the regression or even Z = X. The first stage involves regressing each endogenous variable on the Z vector to produce the vector of residual ê. These estimated residuals are then used to

A String of Earnings Increases, Future Earnings Uncertainty, and Firm Fundamentals* Sarayut Rueangsuwan † Kasetsart University, Thailand August 2015 Abstract Prior literature on meeting or beating earnings benchmarks extensively documents that market rewards firms reporting a string of consecutively earnings increases. To date, it is still unclear what an earnings string really means. This paper empirically provides rational explanations for this phenomenon by investigating whether the increment...