Share Price Response to Earnings Disclosures in Emerging Economies: Malaysia and Mexico

2018 ◽  
Author(s):  
Dr. Ahmed Al-Baidhani
Keyword(s):  
Emerging Economies ◽  
Share Price ◽  
Price Response ◽  
Earnings Disclosures

Share price response to the SEC administrative proceedings against Chinese auditors

2019 ◽  
Vol 34 (9) ◽  
pp. 1131-1148
Author(s):  
Guoping Liu ◽  
Jerry Sun
Keyword(s):  
Design Methodology ◽  
Securities And Exchange Commission ◽  
Share Price ◽  
Accounting Firms ◽  
Content Type ◽  
Share Prices ◽  
Audit Failure ◽  
Price Response ◽  
Chinese Auditors ◽  
Administrative Proceedings

Purpose The purpose of this study is to examines whether clients’ share prices responded to three events, including the Securities and Exchange Commission (SEC) launch of administrative proceedings against five Chinese accounting firms on December 3, 2012, for their failure to hand over audit work papers due to conflict of jurisdiction; the issuance of SEC Administrative Law Judge Elliot’s ruling on January 22, 2014; and the settlement of the administrative proceedings on February 6, 2015. Design/methodology/approach This study uses the Schipper and Thompson approach. Findings It is found that share prices responded negatively around December 3, 2012, for USA-listed Chinese companies who were audited by Chinese auditors. Originality/value This study provides evidence on how share prices reacted to SEC enforcement actions against an affair of non-audit failure.

scholarly journals Intra-Industry Effects of Delayed New Product Introductions

2007 ◽  
Vol 10 (03) ◽  
pp. 415-443 ◽  
Author(s):  
Sheng-Syan Chen ◽  
Tsai-Yen Chung ◽  
Kim Wai Ho ◽  
Cheng-Few Lee
Keyword(s):  
New Product ◽  
Free Cash Flow ◽  
Share Price ◽  
Competitive Effect ◽  
Industry Growth ◽  
Price Response ◽  
New Product Introductions ◽  
Industry Competition ◽  
Information Signaling ◽  
Signaling Effect

We find that for a sample of 324 announcements of delayed new product introductions in 52 industries from 1989 to 1997, the rivals overall experience significantly negative share price response. The results suggest that, for the sample as a whole, the information-signaling effect dominates the competitive effect. We further classify the rivals' share price response by industry and find that about 60% of industries have negative response. We also find that a product delay conveys more negative information about the competitors in those industries that are more likely to have product delays. Finally, we show that rivals' share price response is significantly positively related to the announcement effect on the product delay firm, the degree of industry competition, and the industry growth opportunities, and is significantly negatively related to the degree of relatedness of the announcing firm to the industry, and to the level of the announcing firm's free cash flow relative to that of its competitors.

Risk-Factor Disclosure and Asset Prices

2017 ◽  
Vol 93 (2) ◽  
pp. 191-208 ◽  
Author(s):  
Mirko S. Heinle ◽  
Kevin C. Smith ◽  
Robert E. Verrecchia
Keyword(s):  
Risk Factor ◽  
Cash Flow ◽  
Cost Of Capital ◽  
Common Knowledge ◽  
Flow Distribution ◽  
Share Price ◽  
Higher Moments ◽  
Price Response ◽  
Capm Beta ◽  
Systematic Risk Factors

ABSTRACT While researchers and practitioners alike estimate firms' exposures to systematic risk factors, the disclosure literature typically assumes that exposures are common knowledge. We develop a model where the firm's exposure to a factor is unknown, and analyze the effects of factor-exposure uncertainty on share price and the effects of disclosure about the exposure. We find that: (1) factor-exposure uncertainty introduces skewness and excess kurtosis in the cash flow distribution relative to the commonly used normal distribution; (2) risk-factor disclosure affects all moments of that distribution; and (3) the pricing of higher moments affects the price response of disclosure and the incentives to disclose. For example, factor-exposure uncertainty may actually increase price when the uncertainty implies positive skewness in the cash flow distribution. Hence, a reduction in uncertainty through disclosure may increase cost of capital. We also extend our model to multiple firms and show that factor-exposure uncertainty manifests as uncertainty about a firm's CAPM beta. JEL Classifications: G12; M41.

BP Global Energy Outlook 2030

2013 ◽  
pp. 109-128 ◽  
Author(s):  
C. Rühl
Keyword(s):  
Emerging Economies ◽  
Energy Demand ◽  
Fossil Fuels ◽  
Net Energy ◽  
Global Energy ◽  
The Past ◽  
Market Shares ◽  
The Us ◽  
Almost All ◽  
Oil Gas

This paper presents the highlights of the third annual edition of the BP Energy Outlook, which sets out BP’s view of the most likely developments in global energy markets to 2030, based on up-to-date analysis and taking into account developments of the past year. The Outlook’s overall expectation for growth in global energy demand is to be 36% higher in 2030 than in 2011 and almost all the growth coming from emerging economies. It also reflects shifting expectations of the pattern of supply, with unconventional sources — shale gas and tight oil together with heavy oil and biofuels — playing an increasingly important role and, in particular, transforming the energy balance of the US. While the fuel mix is evolving, fossil fuels will continue to be dominant. Oil, gas and coal are expected to converge on market shares of around 26—28% each by 2030, and non-fossil fuels — nuclear, hydro and renewables — on a share of around 6—7% each. By 2030, increasing production and moderating demand will result in the US being 99% self-sufficient in net energy. Meanwhile, with continuing steep economic growth, major emerging economies such as China and India will become increasingly reliant on energy imports. These shifts will have major impacts on trade balances.

Sign in / Sign up

Export Citation Format

Share Document