Original Articles

Earnings changes: A random walk? Some South African evidence

Published in: Investment Analysts Journal
Volume 24 , issue 41 , 1995 , pages: 49–56

DOI: 10.1080/10293523.1995.11082348

Author(s): W.D. Hamman Graduate School of Business, University of Stellenbosch, , A.C. Jordaan Graduate School of Business, University of Stellenbosch, , E. v.d. M. Smit Graduate School of Business, University of Stellenbosch,

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Abstract

The article examines the concept of earnings changes as a random walk for industrial companies listed on the Johannesburg Stock Exchange. The results overwhelmingly support the hypothesis of higgledy piggledy growth using three different test procedures. There is some suggestion that investors can, on the average, identify companies with the highest growth potential.

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