Question: Is the market s anticipation of the GN BN in earnings

Is the market’s anticipation of the GN/ BN in earnings during 12 months prior to the month of release of the earnings release, as Ball and Brown found in Figure 5.3, consistent with a correlation or a causation argument for the effect of accounting information on abnormal stock returns? Explain. With which argument is the market response during month 0 most consistent? Explain.

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