Koch and Sun's $(2004)$ main finding was that

Kysymys $11$Vastaus

a$.$

Market cannot fully interpret information in past earnings surprises.

b$.$

Accounting conservatism explains why market responses are weaker to dividend decreases than to dividend increases.

c$.$

When past earnings change and dividend change have the same sign it predicts firm$$s future stock returns.

d$.$

Dividend announcement that takes place before earnings announcement helps to resolve valuation and persistence implications of past earnings changes