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Author: Dedhy Sulistiawan
Publisher:
ISBN:
Category :
Languages : en
Pages : 12
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Book Description
This study examines whether technical analysis signals can detect price reactions before and after earnings announcement dates in Indonesian stock market. Earnings announcements produce reactions, both before and after the announcements. Informed investors may use private information before earnings announcements (Christophe, Ferri and Angel, 2004; Porter, 1992). Using technical analysis signals, this study expects that retail investors (uninformed investors) can detect preannouncements reaction. Technical analysis is selected because it is a powerful strategy, especially in developing stock market (Fifield, Power, and Sinclair, 2005; Ahmed, Beck, and Goldreyer, 2000), including Indonesia (McKenzie, 2007). This study also examines technical analysis signals after earnings announcements. Using the idea that preannouncements reaction absorb post announcements reactions, this study expect that technical analysis signals difficult to detect price reaction after earnings announcements. Using Indonesian data over 2007-2011, the results show that technical analysis signal before earnings announcements can produce profit, but signals after earnings announcements do not produce same results. Using several different measures of return, the results are statistically robust. Based on those results, this study concludes that technical analysis signal can detect reaction before announcements, but the signals don't work after earnings announcements. These findings contribute to accounting and technical analysis literatures.
Author: Dedhy Sulistiawan
Publisher:
ISBN:
Category :
Languages : en
Pages : 12
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Book Description
This study examines whether technical analysis signals can detect price reactions before and after earnings announcement dates in Indonesian stock market. Earnings announcements produce reactions, both before and after the announcements. Informed investors may use private information before earnings announcements (Christophe, Ferri and Angel, 2004; Porter, 1992). Using technical analysis signals, this study expects that retail investors (uninformed investors) can detect preannouncements reaction. Technical analysis is selected because it is a powerful strategy, especially in developing stock market (Fifield, Power, and Sinclair, 2005; Ahmed, Beck, and Goldreyer, 2000), including Indonesia (McKenzie, 2007). This study also examines technical analysis signals after earnings announcements. Using the idea that preannouncements reaction absorb post announcements reactions, this study expect that technical analysis signals difficult to detect price reaction after earnings announcements. Using Indonesian data over 2007-2011, the results show that technical analysis signal before earnings announcements can produce profit, but signals after earnings announcements do not produce same results. Using several different measures of return, the results are statistically robust. Based on those results, this study concludes that technical analysis signal can detect reaction before announcements, but the signals don't work after earnings announcements. These findings contribute to accounting and technical analysis literatures.
Author: Dedhy Sulistiawan
Publisher:
ISBN:
Category :
Languages : en
Pages : 23
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Book Description
This study discusses about technical analysis signal and earnings-announcements timing. Technical analysis signal is used to capture price reaction around earnings announcements. Technical analysis is selected because it is competing information to fundamental information (Flanegin and Rudd 2005), especially in emerging market (Fifield et al., 2005). The longer reporting lag will result a tendency of bigger information leakage which make price reaction before announcements are stronger. That reaction produces a reliable technical analysis signal. By using Indonesian stock market data, the results show that (1) technical analysis signal generate bigger (lower) return for late (earlier) reporting, and (2) reporting lag positively affect to the performance of technical analysis signal that emerge before annual earnings announcements, especially in “buy signal” sample. These findings also indicate a tendency of bigger information leakage for companies that delay earnings announcements. This study contributes to build a bridge between technical analysis and earnings-announcement timing studies.
Author: VICTOR L. BERNARD
Publisher:
ISBN:
Category :
Languages : en
Pages : 44
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Book Description
Author: Tom K. Lloyd, Sr.
Publisher: John Wiley & Sons
ISBN: 111865191X
Category : Business & Economics
Languages : en
Pages : 368
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Book Description
A comprehensive guide to technical analysis for both the novice and the professional Technical analysis is a vital tool for any trader, asset manager, or investor who wants to earn top returns. Successful Stock Signals for Traders and Portfolio Managers lets you combine technical analysis and fundamental analysis using existing technical signals to improve your investing performance. Author Tom Lloyd Sr. explains all the technical indicators you need to know, including moving averages, relative strength, support and resistance, sell and buy signals, candlesticks, point and figure charts, Fibonacci levels, Bollinger Bands, and both classic and new indicators. Merging these technical indicators with fundamental analysis will keep you in a portfolio of outperforming stocks, sharpen your fundamental buy discipline, and put your sell discipline on autopilot. Includes case studies applying technical analysis to current trending and hotly debated stocks like Facebook, LinkedIn, and Netflix Offers thorough and straightforward guidance on technical analysis for both professional and individual investors Covers the vital indicators in the public domain that investors need to know Whether you're an individual investor who wants to beat the indexes, a trader looking for high-risk, high-return positions, or a portfolio manager who wants to take a fundamental approach, this an ideal guide to technical analysis and indicators.
Author: Lu Xie
Publisher:
ISBN:
Category :
Languages : en
Pages :
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Book Description
This study examines the revealed preference of informed traders to infer the extent to which earnings announcements are informative of subsequent stock price responses. From 2011 to 2015, a cartel of sophisticated traders illegally obtained early access to firm press releases prior to publication and traded over 1,000 earnings announcements. I study their constrained profit maximization: which earnings announcements they chose to trade vs. which ones they forwent trading. Consistent with theory, these traders targeted more liquid earnings announcements with larger subsequent stock price movement. Despite earning large profits overall, the informed traders enjoyed only mixed success in identifying the biggest profit opportunities. Controlling for liquidity differences, only 31% of their trades were in the most extreme announcement period return deciles. I model the informed traders' tradeoff between liquidity and expected returns. From this model, I recover an average signal-to-noise ratio of 0.4. I further explore two potential economic sources of this noise: (i) ambiguous market expectations of earnings announcements and (ii) heterogeneous interpretations of earnings information by the marginal investor. Empirically, I document that the informed traders avoided noisier earnings announcements as measured by both sources of noise.
Author: Seok Woo Jeong
Publisher:
ISBN:
Category :
Languages : en
Pages : 294
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Book Description
Author: Nils Carlson
Publisher:
ISBN:
Category : Economics
Languages : en
Pages :
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Book Description
The stock market, according to the efficient market hypothesis, is informationally efficient in that prices instantly reflect all available public information. Prior financial literature on the study of the relationship between earnings announcements and their effect on the stock market reveals that there is a significant "drift" of a firm's cumulative abnormal return that occurs in the direction of its earnings surprise. This phenomenon is in contrast to how the efficient market hypothesis would expect the market to react to this new information. The prior studies on this topic were conducted in the 1980s - before the existence of both high-speed access to news via cell phone alerts and the increasing ability to trade quickly on new information via online brokers. This study attempts to test this "post-earnings announcement drift" on the current market to see if this phenomenon is still relevant in today's market and to see if it can be exploited. This study finds that there is still a post-earnings announcement drift that persists for the twenty-one days following earnings announcements. The cumulative abnormal returns continue to drift upwards for "good news" firms and continue to drift downwards for "bad news" firms for twenty-one days and may continue in the same direction after this period. This study also finds that a trading strategy that involves forming long portfolios of firms that beat earnings by the greatest magnitude (most positive earnings surprise) and also have the largest abnormal return on the day of the announcement and forming a short portfolio of firms that miss estimates by the greatest magnitude (most negative earnings surprise) and have the most negative abnormal return on the day of the announcement had an average annualized return of 20.343% over the ten year period starting in 2004 while the S & P 500 had an average annualized return of 9.1% over the same period.
Author: Seok Woo Jeong
Publisher:
ISBN:
Category :
Languages : en
Pages : 117
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Book Description
Author: Benjamin Schmitt
Publisher:
ISBN: 9783656972426
Category :
Languages : en
Pages : 56
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Book Description
Bachelor Thesis from the year 2008 in the subject Business economics - Investment and Finance, grade: 1.1, EBS European Business School gGmbH (Finance), language: English, abstract: Many authors have already studied about stock price reactions after earnings announcements yet, which is because of the importance of earnings announcements, in particular quarterly earnings announcements, for many investors. However, all major studies concerning this topic deal with long-term scenarios, the stock's price performance is measured for a time period of at least three quarters. Due to the fact that there are many investors, especially institutional investors such as hedge funds that trade stocks much more frequently, the existing studies are not relevant for them. This paper studies stock price reactions around quarterly earnings announcements for companies listed in Deutscher Aktienindex (DAX) or Midcap DAX (MDAX) with respect to changes of the company's full-year outlook and of earnings surprise regarding analyst consensus forecast within ten days before and after the announcement date. Hence, this paper aims to analyse short-term reaction to quarterly earnings announcements, which are of relevance for all investors, whose investment strategy is, at least partially, focussing on the short-term performance. The main target group of this analysis are therefore hedge funds and investors that run short-term strategies. Due to the fact that the widespread Event Study Methodology is focused on the long-term, it is irrelevant for this analysis.
Author: Charles D. Kirkpatrick (II.)
Publisher:
ISBN: 9780132931946
Category : Investment analysis
Languages : en
Pages : 187
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Book Description
