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Jia, Yuecheng - 2017

This paper investigates whether profitability skewness is related to expected stock return. We document significant evidence that profitability skewness positively predicts cross-sectional stock returns, opposite to the negative relation between return skewness and stock returns.The positive...

Persistent link: https://www.econbiz.de/10012949791

Profit Persistence and Stock Returns : Does the Market Care?

McMillan, David G. - 2018

We examine the relation between stock returns and profit persistence. Profit persistence is an indicator of competitive … managerial ability and three different measures of profit, we establish that persistence typically increases in firm size, market …-level results regarding the cash flow and risk premium drivers. Also, for competition policy where results show higher profit …

Persistent link: https://www.econbiz.de/10012914860

Non-GAAP Earnings and Stock Price Crash Risk

Hsu, Charles - 2020

We investigate whether non-GAAP earnings disclosures increase stock price crash risk. Consistent with the notion that non-GAAP reporting allows managers to downplay reported bad news in GAAP earnings and re-direct investors' attention to the more positive aspects of performance, our empirical...

Persistent link: https://www.econbiz.de/10012847732

Stock Performance Subsequent to Combinations in Quarterly Revenue Surprise, Earnings Surprise, Guidance, Valuation, and Report Time

Alvarado, Jose - 2020

Finance literature highlights various reasons for stock performance subsequent to earnings announcements. However, other moving parts in these scenarios must also be simultaneously specified. While both revenue and earnings surprises are important for determining stock performance,...

Persistent link: https://www.econbiz.de/10012849035

Stock Liquidity Risk and the Cross-Sectional Earnings-Returns Relation

Isshaq, Zangina - 2016

) are profit making …

Persistent link: https://www.econbiz.de/10012981424

Earnings Seasonality, Management Earnings Forecasts, and Stock Returns in China

Jiang, Danling; Song, Pan; Zhu, Hongquan - 2022

Previous research finds that, owing to the representativeness heuristic bias, earnings seasonal rank negatively predicts stock returns surrounding earnings announcements (EAs) in China’s A-share markets. We examine whether management earnings forecasts (MEFs) help alleviate the stock return...

Persistent link: https://www.econbiz.de/10013405828

Former investors and long-horizon price drifts in response to earnings news

Arif, Salman; Kaplan, Zachary; Ahn, Seong Jin - 2022

Prior to investing in a firm, fund managers must evaluate it. This tilts funds’ future portfolio positions toward former portfolio investments, as the past awareness of the firm decreases the cost of evaluating it in the future. We find that firms with many former investors experience...

Persistent link: https://www.econbiz.de/10013309723

Analysts' disagreement, self-selection, and stock returns

Wu, Liang; Long, Yunshen; Li, Wenyue; Wu, Bingyan - In: Journal of business economics and management 24 (2023) 1, pp. 37-53

Two ex-ante variables are introduced to characterize the analysts' biased behavior, namely the analysts' disagreement and self-selection in analysts' earnings forecasts. The study investigates the impact of the analysts' disagreement and self-selection on the stock returns. A theoretical...

Persistent link: https://www.econbiz.de/10014330637

What Moves the Market? Individual Firms’ Earnings Announcements Versus Macro Releases As Drivers of Index Returns

Ogneva, Maria; Xia, Jingjing - 2021

In this paper, we characterize the relative importance of two sources of fundamental market-wide news—large firms’ earnings announcements and macroeconomic releases. Our investigation is motivated by growing concerns in the financial community about the increasing impact of individual...

Persistent link: https://www.econbiz.de/10013229392

Time-Varying Earnings Persistence and the Delayed Stock Return Reaction to Earnings Announcements

Chen, Changling - 2012

This paper examines how investors assimilate firm-specific earnings persistence into prices in the context of delayed stock return reactions to earnings announcements (i.e., post-earnings-announcement drift, or PEAD). The literature predicts that if investors fail to recognize fully the...

Persistent link: https://www.econbiz.de/10013111249