Stock returns, aggregate earnings surprises, and behavioral finance
نویسندگان
چکیده
منابع مشابه
Stock Returns Following Profit Warnings: Evidence for Behavioral Finance
We estimate abnormal returns on stocks following profit warnings. Our data set is statements described by CNN as profit warnings. We find negative abnormal returns of approximately 5% in the six months following the warning. Over the period six to eighteen months after the warning we find positive abnormal returns of 18%. After eighteen months there is no evidence of significant abnormal return...
متن کاملStreaks in Earnings Surprises and the Cross-Section of Stock Returns
The gambler’s fallacy (Rabin, 2002) predicts that trends bias investor expectations. Consistent with this prediction, we find that investors underreact to streaks of consecutive earnings surprises with the same sign. When the most recent earnings surprise extends a streak, post-earnings announcement drift is strong and significant. In contrast, the drift is negligible following the termination ...
متن کاملPurchase Obligations, Earnings Persistence and Stock Returns
This paper examines whether the disclosure of purchase obligations in the MD&A section of 10-K filings provides useful information to investors. Firms are predicted to enter into additional purchase obligations when they expect an increase in demand for their products. As such, growth in purchase obligations is predicted to be associated with higher future sales and earnings. The evidence is co...
متن کاملAccrual Reversals, Earnings and Stock Returns
Accounting accruals anticipate future economic benefits. They are intended to reverse upon the realization of the anticipated future benefits, such that their reversals have no net impact on future earnings. In practice, however, we show that extreme accruals exhibit a high frequency of subsequent reversals that do impact future earnings. We demonstrate that these reversals explain a number of ...
متن کاملBehavioral Finance Models and Behavioral Biases in Stock Price Forecasting
Stock market is affected by news and information. If the stock market is not efficient, the reaction of stock price to news and information will place the stock market in overreaction and under-reaction states. Many models have been already presented by using different tools and techniques to forecast the stock market behavior. In this study, the reaction of stock price in the stock market was ...
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ژورنال
عنوان ژورنال: Journal of Financial Economics
سال: 2006
ISSN: 0304-405X
DOI: 10.1016/j.jfineco.2004.06.016