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Smith, Kevin; So, Eric - 2020

We develop a measure of how information events impact investors' perceptions of risk that is broadly applicable and simple to implement. We derive this measure from an option-pricing model where investors anticipate an announcement that simultaneously conveys information on the announcer's...

Persistent link: https://www.econbiz.de/10012244502

Accounting Choice, Announcement Returns and Operating Performance in Stock-for-Stock Acquisitions

Pandit, Shail - 2009

Until 2001, certain stock acquisitions could be accounted for as pooling-of-interests. There were concerns that pooling was associated with earnings fixation and weak corporate governance. I investigate the cross-sectional variation in the purchase-pooling choice and its association with...

Persistent link: https://www.econbiz.de/10014046834

Value Relevance of Accounting Information and Stock Price Reaction : Empirical Evidence from China

Rahman, Jahidur Md; Liu, Ruoling - 2021

Research question: This study investigates whether the release of financial accounting information is related to the … change in stock prices.Motivation: The relationship between accounting information and stock price reaction is well … accounting information in emerging economies? According to the standards of Wall Street, London, and Tokyo, the emerging capital …

Persistent link: https://www.econbiz.de/10013226380

Informed Trading and the Market Reaction to Accounting Restatements

Badertscher, Brad A. - 2013

We examine how informed trading activities affect the market reaction to accounting restatements. We find significantly … less negative reactions to accounting estatements when managers are net purchasers of stock before the restatement, and ….Taken together, these findings suggest that investors use informed trading activities to help interpret and price accounting …

Persistent link: https://www.econbiz.de/10013094136

Nickels Not Pennies : Granularity in Analysts’ EPS Forecasts and Forecast Revisions

Zhou, Ling - 2009

This paper extends the study of Herrmann and Thomas (2005) on granularity in analyst forecasts at multiples of nickels and finds that forecasts at multiples of nickels are more optimistic, and induce weaker market responses. Granularity in analyst forecasts combined with managers’ incentive to...

Persistent link: https://www.econbiz.de/10014205618

Can Executives Predict How Firm News Affects Stock Price?

Bernard, Darren; Juliani, Elsa Maria; Lawrence, Alastair - 2021

More than 650 U.S. public company executives predict the stock price response to their quarterly financial reports and share their prediction after under a nondisclosure agreement. Despite having full knowledge of the reports before their release, executives’ estimates differ from realized...

Persistent link: https://www.econbiz.de/10013234899

How Disaggregated Forecasts Influence Investor Response to Subsequent Earnings Announcements

Clor-Proell, Shana - 2018

Firms often issue disaggregated earnings forecasts, and prior research reveals benefits to doing so. However, we hypothesize and experimentally find that the benefits of disaggregated forecasts do not necessarily carry over to the time of actual earnings announcements. Rather, disaggregated...

Persistent link: https://www.econbiz.de/10012933212

Volatility Skew, Earnings Announcements, and the Predictability of Crashes

Van Buskirk, Andrew - 2011

This paper examines the relation between firm-level implied volatility skew and the likelihood of extreme negative events, or crash risk. I show that volatility skew identifies which firms are likely to experience crashes, but only in short-window earnings announcement periods. The predictive...

Persistent link: https://www.econbiz.de/10013131489

Crowdsourced Forecasts and the Market Reaction to Earnings Announcement News

Schafhäutle, Sandra; Veenman, David - 2023

This study examines whether crowdsourced forecasts of earnings and revenues help investors unravel bias in earnings announcement news, which is commonly derived from analyst forecasts. Our results suggest that investors, on average, understand and price the predictive signals reflected in...

Persistent link: https://www.econbiz.de/10014352558

Country News Sentiment Factors Predict Forex Prices

Hafez, Peter - 2013

In this study, we test a set of country macro sentiment indexes that measure the trailing sentiment on both scheduled and unscheduled economic and geopolitical news events. We develop a cross-over strategy in the FX market based on short to long-term news sentiment inflection points covering the...

Persistent link: https://www.econbiz.de/10013081446