Electronic copy available at: http://ssrn.com/abstract=1297949 0 The Empirical Relationship Between Stock Prices and Long-term Earnings Joe Callaghan Professor of Accounting callagha@oakland.edu Austin Murphy Professor of Finance jamurphy@oakland.edu Mohinder Parkash Associate Professor of Accounting parkash@oakland.edu Hong Qian Assistant Professor of Finance Qian2@oakland.edu *All authors are affiliated with Department Accounting and Finance, Oakland University, Rochester, MI 48309- 4493; Tel.: 248-370-2125; Fax: 248-370-4275).