Comments on ‘Earnings forecasting research: Its implications for capital markets research’ by L. Brown

This commentary extends Larry Brown’s survey paper on the link between earnings forecasting research and capital markets research by discussing emerging research in four areas: (a) the relation between current earnings and future earnings or the time-series properties of reported earnings; (b) the relation between current earnings and current prices, based on the relation each has with future earnings; (c) the ability to predict future stock returns using accounting information to predict future earnings; and (d) specification issues to consider when estimating price-earnings regressions.