Stock Price Responses to Earnings Announcements: Focusing on Investors’ Attention and Market Sentiment

This study analyzes the impact of investors’ attention, market sentiment, and company characteristics on stock price responses to earnings announcements, using Korean data from 2003 2019. First, we find that prices respond in same direction as unexpected earnings, significance response decreases time passes post-event period. Specifically, value stocks quickly appropriately during an event The growth tend overreact good news period, then show a reversal effect underreact bad period adjust through post-earnings announcement drift(PEAD). Second, large small/medium-sized companies with higher investor attention those lower take respond. Third, found sentiment does not significantly but positively impacts long-term(event combined) periods.