Differential Information Content of Earnings Announcements PDF Download
Are you looking for read ebook online? Search for your book and save it on your Kindle device, PC, phones or tablets. Download Differential Information Content of Earnings Announcements PDF full book. Access full book title Differential Information Content of Earnings Announcements by Charles Edward Wasley. Download full books in PDF and EPUB format.
Author: Charles Edward Wasley
Publisher:
ISBN:
Category : Accounting and price fluctuations
Languages : en
Pages : 108
Get Book Here
Book Description
Author: Charles Edward Wasley
Publisher:
ISBN:
Category : Accounting and price fluctuations
Languages : en
Pages : 108
Get Book Here
Book Description
Author: Christine X. Jiang
Publisher:
ISBN:
Category :
Languages : en
Pages :
Get Book Here
Book Description
We study after-hours trading (AHT), price contributions, and price discovery following quarterly earnings announcements released outside of the normal trading hours. For Standard & Poor's (S&P) 500 index stocks from 2004-2008, AHT is heightened on announcement days. A significant portion of the price change and price discovery occurs immediately after the earnings releases. Prices in AHT show a large degree of informational efficiency, further demonstrating the importance of price discovery in AHT. We also provide evidence suggesting that firms prefer after-hours earnings announcements, as trades are mainly from informed traders, and those trades are relied upon to convey information to the general public.
Author: John Shon
Publisher: Pearson Education
ISBN: 0132659549
Category : Business & Economics
Languages : en
Pages : 23
Get Book Here
Book Description
This Element is an excerpt from Trading on Corporate Earnings News: Profiting from Targeted, Short-Term Options Positions (9780137084920) by John Shon, Ph.D., and Ping Zhou, Ph.D. Available in print and digital formats. Understand those crucial quarterly earning announcements: how they work, and how they impact stock prices. Quarterly earnings announcement are the most salient, most anticipated, regularly-recurring announcement that companies make. They are the most watched piece of information that comes directly from the people that know the business the best. They are also considered the most reliable source of information, largely because companies are subject to strict SEC Rule 10b-5 rules...
Author: Gordon Douglas Richardson
Publisher: Ann Arbor, Mich. : University Microfilms International
ISBN:
Category : Accounting
Languages : en
Pages : 350
Get Book Here
Book Description
Author: Jae-Oh Kim
Publisher:
ISBN:
Category : Disclosure in accounting
Languages : en
Pages : 210
Get Book Here
Book Description
Author: Sudipta Basu
Publisher:
ISBN:
Category :
Languages : en
Pages : 46
Get Book Here
Book Description
Earnings announcement days on average provide more information to the stock market than any other days in each quarter. In particular, the proportions of the variation in annual returns explained by returns on days with dividend announcements, management forecasts, preannouncements, or 10-K and 10-Q filings are consistently lower than the 11% explained by earnings announcement days. Only the largest realized absolute daily returns in a quarter match the ability of earnings announcement returns to explain annual returns. We conclude that earnings announcements are individually the most important source of new information in the equity market. Earnings announcement days are likely to remain a preferred setting for testing theories about production, dissemination, and use of information (both accounting and non-accounting) in the equity market.
Author: Jonathan A. Milian
Publisher:
ISBN:
Category :
Languages : en
Pages :
Get Book Here
Book Description
I compare the information content of quarterly earnings guidance and quarterly earnings by examining their associations with current and future stock returns when the two signals are bundled at earnings announcements. At the bundled announcement, I find a significantly stronger association between announcement returns and guidance news. From the day after the bundled announcement through the next earnings announcement, both signals generate abnormal return drifts of about 200 basis points. However, the timing of the post-announcement returns differs considerably. For guidance, about 50% of the post-announcement drift occurs at the next earnings announcement. In contrast, for earnings, about 20% of the preceding drift reverses at the next earnings announcement. Investor ignorance of the drift following guidance news coupled with a fixation on post-earnings announcement drift potentially explains this surprising difference in the timing of the post-announcement returns. Overall, this study indicates that bundled quarterly earnings guidance contains more information than quarterly earnings and that investors incorrectly overweight the earnings news and underweight the guidance news during the post-announcement period until the next earnings announcement.
Author: Angela K. Davis
Publisher:
ISBN:
Category :
Languages : en
Pages : 31
Get Book Here
Book Description
Earnings press releases are the primary mechanism by which managers announce quarterly earnings and make other concurrent disclosures to investors and other stakeholders. A largely unexplored element of earnings press releases is the language that managers use throughout the press release, which we argue provides a unifying framework for these disclosures and an opportunity for managers to signal, both directly and more subtly, their expectations about future performance. We analyze the full texts of approximately 23,000 earnings press releases issued between 1998 and 2003 and examine whether the language used in these earnings press releases provides a signal about expected future firm performance and whether the market responds to this signal. Using categories derived from linguistic theory, we count words characterized as optimistic and pessimistic and construct a measure of managers' net optimistic language for each earnings press release. We find that this measure is positively associated with future ROA and generates a significant market response in a short window around the earnings announcement date. We include in our models the earnings surprise as well as other quantifiable, concurrent disclosures identified in prior research as associated with the market's reaction to earnings press releases. Our results support the premise that earnings press release language provides a signal regarding managers' future earnings expectations to the market and that the market responds to this signal. We interpret our evidence to suggest that managers use language in earnings press releases to communicate credible information about expected future firm performance.
Author: Shu Yeh
Publisher:
ISBN:
Category : Corporation reports
Languages : en
Pages : 220
Get Book Here
Book Description
Author: Gordon Spooner Potter
Publisher:
ISBN:
Category :
Languages : en
Pages : 336
Get Book Here
Book Description
