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Author: Qi Sun
Publisher:
ISBN:
Category :
Languages : en
Pages : 16
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Book Description
This study investigates whether the timing of earnings announcement in earnings season affects stock price discovery process. This paper documents that market reaction is more favorable for earnings announcements made at the beginning of earnings season (“timing effect”). Price reaction on earnings announcement dates and post-announcement price drift are significantly stronger for positive earnings surprises released at the beginning of earnings season. Negative earnings surprises announced at the end of earnings season have the most pronounced post-announcement price decline. The timing effect associated with positive earnings surprises is consistent with industry information transfer theory. The timing effect associated with negative earnings surprise is mainly driven by market penalty on companies' strategic delay of bad news announcements.
Author: Qi Sun
Publisher:
ISBN:
Category :
Languages : en
Pages : 16
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Book Description
This study investigates whether the timing of earnings announcement in earnings season affects stock price discovery process. This paper documents that market reaction is more favorable for earnings announcements made at the beginning of earnings season (“timing effect”). Price reaction on earnings announcement dates and post-announcement price drift are significantly stronger for positive earnings surprises released at the beginning of earnings season. Negative earnings surprises announced at the end of earnings season have the most pronounced post-announcement price decline. The timing effect associated with positive earnings surprises is consistent with industry information transfer theory. The timing effect associated with negative earnings surprise is mainly driven by market penalty on companies' strategic delay of bad news announcements.
Author: Qin Emma Wang
Publisher:
ISBN:
Category :
Languages : en
Pages : 38
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Book Description
This paper investigates price discovery between control shares (the superior voting class) and public shares (the inferior voting class) issued by 62 dual-class firms around 148 quarterly earnings announcements from January 2002 to June 2008. We document substantial informed trading in both control and public shares. The average price discovery of control shares is 46.6% for positive events and 40.5% for negative events during the event periods. In addition, before the earnings announcements, abnormal trading volume and price discovery increase significantly in control shares relative to public shares. We find price discovery of control shares increases with relative volume of control shares to public shares and relative bid-ask spread but decreases with relative institutional ownership and relative volatility. Our results suggest that publicly traded superior voting class contributes to price discovery substantially, especially before earnings announcements when the information asymmetry is high. The listing of control shares not only enhances price efficiency, but also provides opportunities for outside sophisticated investors to get voting rights and engage in monitoring. Our study sheds new light on the issues of price discovery and corporate governance of dual-class firms.
Author:
Publisher:
ISBN:
Category :
Languages : en
Pages :
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Book Description
Author: John Shon
Publisher: Financial Times/Prentice Hall
ISBN: 9780137084920
Category : Business enterprises
Languages : en
Pages : 0
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Book Description
Profit from earnings announcements, by taking targeted, short-term option positions explicitly timed to exploit them! Based on rigorous research and huge data sets, this book identifies the specific earnings-announcement trades most likely to yield profits, and teaches how to make these trades--in plain English, with real examples! Trading on Corporate Earnings News is the first practical, hands-on guide to profiting from earnings announcements. Writing for investors and traders at all experience levels, the authors show how to take targeted, short-term option positions that are explicitly timed to exploit the information in companies' quarterly earnings announcements. They first present powerful findings of cutting-edge studies that have examined market reactions to quarterly earnings announcements, regularities of earnings surprises, and option trading around corporate events. Drawing on enormous data sets, they identify the types of earnings-announcement trades most likely to yield profits, based on the predictable impacts of variables such as firm size, visibility, past performance, analyst coverage, forecast dispersion, volatility, and the impact of restructurings and acquisitions. Next, they provide real examples of individual stocks-and, in some cases, conduct large sample tests-to guide investors in taking advantage of these documented regularities. Finally, they discuss crucial nuances and pitfalls that can powerfully impact performance.
Author: John Merrick
Publisher:
ISBN:
Category : Stock index futures
Languages : en
Pages : 30
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Book Description
Author: Philip B. Shane
Publisher:
ISBN:
Category :
Languages : en
Pages : 27
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Book Description
On October 23, 2000, the SEC implemented a regulation that changed the way corporate managers interact with analysts and investors. Under Reg. FD, managers can no longer give individual guidance to analysts without simultaneously disclosing the information to the public. This paper examines the impact of this change in the information environment. We find that, although Reg. FD curtails private discussions between managers and analysts, the percentage of earnings announcements that meet or slightly beat analysts' expectations has not declined after Reg. FD. We also evaluate differences in the accuracy of analysts' quarterly earnings forecasts during the year before and the year after Reg. FD. We find that forecasts issued early in quarters after Reg. FD are less accurate than similarly timed forecasts prior to Reg. FD. However, our evidence suggests that in the post-Reg. FD period, analysts gather relatively more uncertainty-relieving information between earnings announcements and, by the end of the quarter, their forecasts are as accurate as they were in the prior year. Finally, our evidence suggests that, relative to the preceding year, price discovery has improved in the post-Reg. FD period. Controlling for the level of uncertainty at the beginning of the quarter, we find significantly reduced stock market reactions to earnings announcements after Reg. FD. Overall, these results suggest that, in the post-Reg. FD environment, firms have found effective alternative means of informing analysts and investors about forthcoming quarterly earnings.
Author: Christine X. Jiang
Publisher:
ISBN:
Category :
Languages : en
Pages :
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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: Patricia M. Dechow
Publisher: Research Foundation of the Institute of Chartered Financial Analysts
ISBN: 9780943205687
Category : Corporate profits
Languages : en
Pages : 152
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Book Description
Author: Deniz Ozenbas
Publisher: Springer Nature
ISBN: 3030748170
Category : Business enterprises
Languages : en
Pages : 111
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Book Description
This open access book addresses four standard business school subjects: microeconomics, macroeconomics, finance and information systems as they relate to trading, liquidity, and market structure. It provides a detailed examination of the impact of trading costs and other impediments of trading that the authors call rictions It also presents an interactive simulation model of equity market trading, TraderEx, that enables students to implement trading decisions in different market scenarios and structures. Addressing these topics shines a bright light on how a real-world financial market operates, and the simulation provides students with an experiential learning opportunity that is informative and fun. Each of the chapters is designed so that it can be used as a stand-alone module in an existing economics, finance, or information science course. Instructor resources such as discussion questions, Powerpoint slides and TraderEx exercises are available online.
Author: Oleksii Ignatenko
Publisher: Springer Nature
ISBN: 303114841X
Category : Education
Languages : en
Pages : 575
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Book Description
This book contains the workshops papers presented at the 17th International Conference on Information and Communication Technologies in Education, Research, and Industrial Applications, ICTERI 2021, held in Kherson, Ukraine, in September-October 2021. The 33 revised full papers and 4 short papers included in this volume were carefully reviewed and selected from 105 initial submissions. The papers are organized according to the following workshops: 9th International Workshop on Information Technology in Economic Research (ITER 2021); 5th International Workshop on Methods, Resources and Technologies for Open Learning and Research (MROL 2021); International Workshop RMSEBT 2021: Rigorous Methods in Software Engineering and Blockchain Technologies; 7th International Workshop on Theory of Reliability and Markov Modeling for Information Technologies (TheRMIT 2021); 1st Ukrainian Natural Language Processing Workshop (UNLP 2021).
