We examine the reaction of the equity options market to accounting earnings announcements over the period 1996–2008 using changes in implied volatility to measure the options market response to earnings news. We find that positive earnings surprises and positive profit announcements produce a...

We draw on the psychology literature on cross-country cultural differences to explain the information content of stock markets around the world. We show that cultural dimensions in the studies of Hofstede (1980, 2001) such as individualism and uncertainty avoidance closely relate to several...