Download or read book An Empirical Investigation of Pre Earnings Announcement Quiet Periods written by Richard M. Frankel and published by . This book was released on 2002 with total page 31 pages. Available in PDF, EPUB and Kindle. Book excerpt: Previous research suggests legal liability as a strong determinant of corporate disclosure policies and the content of corporate disclosures. We study the influence of pre-earnings announcement quiet periods on legal liability and the affect of Regulation FD on corporation's use of quiet periods. The we provide evidence on three questions: First, we test whether quiet periods have become more prominent following the implementation of regulation FD. Second, we compare the characteristics of quiet period firms to firms making earnings forecasts after the fiscal-period-end. Third, we investigate how trading volume at and before earnings announcement dates differs between companies with quiet periods and companies making earnings forecasts after the fiscal-period-end. The purpose of these tests is to better understand the effect of legal liability on non-disclosure policies. We find a substantial increase in the number of reported quiet periods after implementation of FD requirements. We also find that quiet period firms have characteristics associated with higher litigation risk. Finally, we find that volume is significantly higher before and significantly lower at earnings announcement dates associated with quiet periods.
Download or read book An Empirical Investigation of the Effect of Quarterly Earnings Announcement Timing on Stock Returns written by William Kross and published by . This book was released on 1984 with total page 24 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book A Study of Market Efficiency in the Period Preceding Earnings Announcements written by Alika M. Phipps and published by . This book was released on 2006 with total page 46 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Efficient Market Hypothesis, which has been one of the fundamental propositions of finance for over 30 years, implies that an investor, whether he is an amateur or a professional trader, cannot consistently beat the market. In this study, we examine if this theory holds in the period preceding an earnings announcement, by testing whether there is a relationship between stock returns before and after an earnings announcement. We find that there exists a negative correlation between pre-earnings returns and post-earnings returns for small capitalization stocks that could be explained by investor irrationality. This relationship is statistically significant for pre-earnings returns calculated up to a 10 day period preceding an earnings announcement and strongest over a 3 day period. We also tested to see if there was a correlation between the earnings results in the last quarter and the movements in stock price prior to this quarter's earnings announcement, and did not observe any statistically significant outcomes.
Download or read book An Empirical Investigation of the Differential Market Response to Quarterly Earnings Announcements written by Salem Mohamed Bengharbia and published by . This book was released on 1982 with total page 123 pages. Available in PDF, EPUB and Kindle. Book excerpt: Abstract.
Download or read book Michigan Law Review written by and published by . This book was released on 2003 with total page 1188 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Pre Announcement and Event Period Private Information written by Richard A. Schneible Jr. and published by . This book was released on 2008 with total page 41 pages. Available in PDF, EPUB and Kindle. Book excerpt: We study cross-sectional differences in pre-announcement and event-period private information acquisition across firm size and institutional ownership using trading volume reactions to earnings announcements. We find that abnormal volume associated with absolute price change increases with both firm size and institutional ownership, suggesting that pre-announcement private information acquisition increases with firm size and institutional ownership. We also find that abnormal volume independent of absolute price change increases with institutional ownership, suggesting that event-period private information acquisition increases with institutional ownership. In contrast, abnormal volume independent of absolute price change decreases with firm size, reflecting the previously documented positive relation between firm size and the precision of pre-announcement public information. By demonstrating that firm size and institutional ownership are determinants of pre-announcement and event--period private information acquisition, this study provides new insights regarding the incentive to acquire private information around earnings announcements and helps explain prior empirical results in trading volume reaction studies.
Download or read book A Theoretical and Empirical Investigation of the Information Content of Annual Earnings Announcements written by Gordon Douglas Richardson and published by . This book was released on 1983 with total page 149 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Evolution of Market Uncertainty Around Earnings Announcements written by Dušan Isakov and published by . This book was released on 2013 with total page 24 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper investigates theoretically and empirically the dynamics of the implied volatility (or implied standard deviation - ISD) around earnings announcements dates. The volatility implied by option prices can be interpreted as the level of volatility expected by the market over the remaining life of the option. We propose a theoretical framework for the evolution of the ISD that takes into account two well-known features of the instantaneous volatility: volatility clustering and the leverage effect. In this context, the ISD should decrease after an earnings announcement but the post-announcement ISD path depends on the content of the earnings announcement: good news or bad news. An empirical investigation is conducted on the Swiss market over the period 1989-1998.
Download or read book An Empirical Investigation of the Time Taken to Announce the Annual Earnings of the Firm written by Gordon Chapman and published by . This book was released on 1973 with total page 424 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Pre Disclosure Information Asymmetry and Information Content as a Means of Explaining Trading Volume Responses to Interim Earnings Announcements in a Thinly Traded Stock Market written by Markku J. Vieru and published by . This book was released on 2001 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This study contains empirical findings regarding the effect of interim earnings announcements on investors' trading behavior. The aim of the paper is to empirically investigate whether the trading volume reaction to an interim earnings announcement is associated with the information content of the announcement and the existence of pre-disclosure information asymmetry in the Finnish stock market. The reason for using Finnish data is to establish whether findings from the US in respect of explaining volume inducement around an information event also hold in thin security markets. Pre-disclosure information asymmetry is proxied by the range in analysts' earnings forecasts. Information content is proxied by beta-adjusted returns and the divergence in reported EPS from analysts' mean EPS forecast. The data consist of 118 interim earnings announcements released by 21 firms traded on the Helsinki Stock Exchange (HSE) between 1992 and 1996. It was found that the trading volume reaction is positively associated with the information content of an announcement and also to some extent with the level of pre-disclosure information asymmetry. These results are in line with Kim and Verrecchia's theoretical trading volume proposition and with empirical findings in the US markets. Thus, previous findings produced in more developed stock markets with respect to volume generation around earnings announcements also seem to be applicable to thin markets. However, the significance levels are lower than in similar US studies and the association between positive and negative news is slightly asymmetric.
Download or read book Investors Trade Size and Trading Responses Around Earnings Announcements written by Neil Bhattacharya and published by . This book was released on 2013 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Prior research suggests that the earnings expectations of a segment of the market can be described by the seasonal random-walk model. Prior research also provides evidence that less wealthy and less informed investors tend to make smaller trades (small traders) than wealthier and better informed investors (large traders).I hypothesize that it is the earnings expectations of small traders that are associated with predictions from the seasonal random-walk model. By directly analyzing the trading activities of small and large traders, this study provides evidence that is largely consistent with the hypotheses.Specifically, small traders' trading response around earnings announcements is increasing in the magnitude of seasonal random-walk forecast errors even after controlling for absolute analyst forecast errors, contemporaneous price changes, and market-wide trading. Supplementary analysis reveals that this effect is largely confined to firms with relatively impoverished information environments (i.e., smaller firms and firms with little to moderate analyst following).
Download or read book Evidence of Informed Trading Prior to Earnings Announcements written by John Affleck-Graves and published by . This book was released on 2014 with total page 22 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study examines transactions in stocks during the thirty trading days prior to earnings announcements. Using two methodologies, we find evidence of informed trading for initiators of large transactions (presumably institutions) but not for initiators of small transactions (presumably individuals). Specifically, we find that, relative to a control period, initiators of large transactions tend to buy (sell) stocks prior to earnings announcements that exceed (fall short of) analyst forecasts. In addition, the fraction of total stock price movement that occurs on large transactions is substantially higher during the pre-announcement period than during the control period. Results of both tests suggest, contrary to previous research, that some large traders have and use superior private information prior to large earnings surprises.
Download or read book SEC Docket written by United States. Securities and Exchange Commission and published by . This book was released on 2007 with total page 1264 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Price and Trading Volume Reactions Around Earnings Announcement written by Seok Woo Jeong and published by . This book was released on 1996 with total page 294 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Investors Access to Corporate Management A Field Experiment about 1 on 1 calls written by and published by . This book was released on 2014 with total page 102 pages. Available in PDF, EPUB and Kindle. Book excerpt: Using a combination of field experimental, survey and archival empirical design, I study investors' access to corporate management in the context of public disclosure. Main findings include: (1) high willingness of senior management to engage in 1-on-1-calls with outsiders of the firm to discuss disclosure-related questions, (2) better corporate access when management's communication benefits are higher (3) quarterly quiet periods are not widely practiced and (4) lower information asymmetry and smaller return reactions pre-earnings release are associated with better management access. In my field experiment, 2,563 publicly-traded firms receive two identical emails seeking 1-on-1-calls to clarify MD&A related questions. Emails are sent from two distinct audiences, identifiable via web domain names, as (unknown) investors and consultants. Almost 58% of firms reply. A majority of responses come from senior management offering phone numbers and best times to call. Management access is lower for the consultant-audience which differs in perceived (proprietary) costs and (capital market) benefits from the investor-audience. To investors, management is more accessible when shareholder activism is high, short interest is low and MTB is low. Further, better management access is associated with reduced bid-ask spreads and lower informational content in stock prices shortly before earnings announcement. Together, this paper analyzes an important but academically uninvestigated source for gaining an enhanced understanding of public disclosure. It also serves as a starting point for a new line of work in disclosure-related accounting research that combines field experiments with archival empirical techniques to exploit randomized induced variation in real-world settings.
Download or read book An Empirical Investigation of Equity Market Trade Patterns Surrounding Significant Information Releases written by H. Charles Sparks and published by . This book was released on 2008 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: In this study we examine the response of equity market participants to a wide variety of significant public announcements. Specifically, we examine total and directional trade patterns across 5 investor groups in the 10 trading days centered on the announcement. We utilize the TORQ database to identify the trades initiated by NYSE members other than specialists, individual traders, institutional traders, specialists, and residual trades. We explore different reactions to good news versus bad news disclosures, and examine the reaction to predictable disclosures, namely earnings and dividend announcements, versus more discretionary and less predictable announcements. We find little evidence of privately informed trade in anticipation of announcements concentrated within any investor group. Trading patterns subsequent to announcements are consistent with diversity of opinion in interpreting the announcement across investor groups. There is some evidence suggesting that discretionary, good news announcements are made in response to institutional investor sell pressure.
Download or read book The Silent Depression written by United States. Congress. House. Committee on Oversight and Government Reform and published by . This book was released on 2010 with total page 1668 pages. Available in PDF, EPUB and Kindle. Book excerpt:
