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Options Trading Volume and Stock Price Response to Earnings Announcements

Corrado, Charles J. - 2010

We examine the effect of options trading volume on the stock price response to earnings announcements over the period 1996–2007. Contrary to prior studies, we find no significant difference in the immediate stock price response to earnings information announcements between firms with listed...

Persistent link: https://www.econbiz.de/10013150254

Post-Earnings Announcement Drift in Spain and Behavioural Finance Models

Forner, Carlos - 2009

Our study examines whether behavioural theories can explain post-earnings announcement drift (i.e., earnings momentum) in the Spanish market. In particular, we test models proposed by Daniel, Hirshleifer, and Subrahmanyan (1998), Hong and Stein (1999), and Barberis, Shleifer, and Vishny (1998)....

Persistent link: https://www.econbiz.de/10013155150

Modelling Excess Profit

Magni, Carlo Alberto - 2009

This paper deals with the problem of modelling in a formal way the concept of excess profit, also known as residual … income. A common idea is that excess profit is an unequivocal concept, being the difference between profit and costs, where … all types of costs are taken into account, included the opportunity cost, i.e. the profit the entrepreneur would obtain if …

Persistent link: https://www.econbiz.de/10013159709

Assessing the Structural Change in the Aggregate Earnings-Returns Relation

Curtis, Asher - 2020

We investigate the change in the aggregate earnings-returns relation from negative to positive. We first identify a gradual structural break around the second quarter of 1991. We then find evidence of three contributing factors to the change in the relation. They are: i) an increase in the...

Persistent link: https://www.econbiz.de/10012844326

Investment Dynamics and Earnings-Return Properties : A Structural Approach

Breuer, Matthias - 2019

We propose the standard neoclassical model of investment under uncertainty with short-run adjustment frictions as a benchmark for earnings-return patterns absent accounting influences. We show that our proposed benchmark generates a wide range of earnings-return patterns documented in accounting...

Persistent link: https://www.econbiz.de/10012902450

Inconsistent Signals, Earnings Announcements and Market Uncertainty

He, Wen - 2019

We test the proposition in Johnstone (2016) that new information may lead to higher, rather than lower, uncertainty about firms' future payoffs. Based on the Bayesian rule, we hypothesize earnings news that is inconsistent with investors' prior belief will lead to higher market uncertainty....

Persistent link: https://www.econbiz.de/10012902474

Organizational Structure and Earnings Quality of Private and Public Firms

Bonacchi, Massimiliano - 2019

We examine how heterogeneity in organizational structure affects private firm earnings quality in the European Union. Organizational structure refers to whether the firm is organized as a single legal entity (standalone) or as a business group: the former are firms not controlling or controlled...

Persistent link: https://www.econbiz.de/10012902663

Property Crime, Earnings Variability, and the Cost of Capital

Brushwood, James - 2019

We show that firms located in states where property crime is more prevalent have more uncertain earnings and higher financing costs. Specifically, firms located in states with higher property crime rates have more volatile and less persistent earnings as well as lower quality analysts' earnings...

Persistent link: https://www.econbiz.de/10012905086

The Influence of Dividend Policy and Income Tax on Income Smoothing

Firnanti, Friska - 2019

Objective – This research aims to obtain the empirical evidence on the influence of dividend policy, income tax, firm size, profitability, and leverage on income smoothing.Methodology/Technique – In this research, income smoothing is proxied with the Eckel index and logistic regression is...

Persistent link: https://www.econbiz.de/10012889619

Earnings Volatility, Ambiguity, and Crisis-Period Stock Returns

Ahmed, Anwer S. - 2019

Financial crises are typically marked by substantial increases in ambiguity where prices appear to decouple from fundamentals. Consistent with ambiguity-based asset pricing theories, we find that ambiguity concerns are more severe for firms with higher pre-crisis earnings volatility, causing...

Persistent link: https://www.econbiz.de/10012890190

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