Xit / Pit-1: the ratio of earnings per share for the facility i in year t to the share price at the beginning of the fiscal
year .
Rit: Earnings per share for the company i between the beginning of the period and the end of the fiscal year t .
RDit: dummy variable equal to one if the yield was negative, and zero in the other cases .
Rit × RDit: Interactive variable consists of multiplying the return on the share price of the facility, unreal. The
regression coefficient 1β refers to the ratio of the response to bad news to respond to the good news, as it
represents the positive laboratory that the financial statements are conservative. (Shtiwi, p 600.2010).