Stock price response to earnings announcements: Developed versus emerging economies
نویسندگان
چکیده
منابع مشابه
Bond and Stock Market Response to Unexpected Earnings Announcements
This study examines whether earnings changes convey information in bond markets and finds a significant positive (negative) reaction to unexpected earnings increases (decreases). The results are consistetit whether earnings announcements precede or follow dividend announcements. Thus, earnings surprises convey information to bond markets and changes in firm value are split among bondholders and...
متن کاملQuantifying stock-price response to demand fluctuations.
We empirically address the question of how stock prices respond to changes in demand. We quantify the relations between price change G over a time interval Deltat and two different measures of demand fluctuations: (a) Phi, defined as the difference between the number of buyer-initiated and seller-initiated trades, and (b) Omega, defined as the difference in number of shares traded in buyer- and...
متن کاملComparison between response dynamics in transition economies and developed economies.
In developed economies, the sign of the price increment influences the volatility in an asymmetric fashion--negative increments tend to result in larger volatility (increments with larger magnitudes), while positive increments result in smaller volatility. We explore whether this asymmetry extends from developed economies to European transition economies and, if so, how such asymmetry changes o...
متن کاملAsymmetric Trading Costs Prior to Earnings Announcements: Implications for Price Discovery and Returns
We show the cost of trading on negative news relative to positive news increases prior to earnings announcements. Our evidence suggests this asymmetry is due to financial intermediaries’ preference to reduce their exposure to risks associated with the announcements. The asymmetry creates a predictable upward bias in prices that increases pre-announcement and subsequently reverses, which confoun...
متن کاملAnalysis of stock price fluctuations before earnings statements
The stock market is forward looking; economic indicators and important future events are factored into stock prices. According to the Efficient Market Hypothesis†, markets operate efficiently and stock prices instantly and stock prices instantly reflect all information available. However, inefficiencies in the stock market exist due to the behaviors and expectations of investors. Stock prices m...
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ژورنال
عنوان ژورنال: Corporate Ownership and Control
سال: 2018
ISSN: 1810-3057,1727-9232
DOI: 10.22495/cocv15i4art3