scholarly journals Retail Investor Trading and Market Reactions to Earnings Announcements

2021 ◽  
Author(s):  
Henry L. Friedman ◽  
Zitong Zeng
Keyword(s):  
Earnings Announcements ◽  
Market Reactions ◽  
Retail Investor ◽  
Investor Trading

The Democratization of Investment Research and the Informativeness of Retail Investor Trading

2021 ◽  
Author(s):  
Michael Farrell ◽  
T. Clifton Green ◽  
Russell Jame ◽  
Stanimir Markov
Keyword(s):  
Retail Investor ◽  
Investor Trading

Individual Investor Trading and Return Patterns around Earnings Announcements

2012 ◽  
Vol 67 (2) ◽  
pp. 639-680 ◽  
Author(s):  
RON KANIEL ◽  
SHUMING LIU ◽  
GIDEON SAAR ◽  
SHERIDAN TITMAN
Keyword(s):  
Earnings Announcements ◽  
Individual Investor ◽  
Investor Trading

Earnings management and institutional investor trading prior to earnings announcements

2019 ◽  
Vol 9 (1) ◽  
pp. 22-50 ◽  
Author(s):  
Shasha Liu
Keyword(s):  
Earnings Management ◽  
Institutional Investors ◽  
Earnings Announcements ◽  
Chinese Stock Market ◽  
Data Set ◽  
Content Type ◽  
Trading Patterns ◽  
Earnings Surprises ◽  
Trading Pattern ◽  
Investor Trading

PurposeThe purpose of this paper is to investigate if earnings management affects the trades of different investors prior to earnings announcements.Design/methodology/approachUsing a unique account-level trading data set from the Chinese stock market, the author investigates the different investor trading patterns prior to earnings announcements.FindingsThe author obtains direct evidence to show that: first, institutional investors, particularly active ones, tend to sell (buy) stocks before negative (positive) earnings surprises; second, institutional investors buy stocks intensively with the lowest earnings management and the highest earnings surprises, and the trading patterns are primarily driven by active institutions. No significant trading pattern is observed on the stocks with negative earnings surprises; and third, the author uses a natural experiment in accordance with the Chinese accounting standards reform to address endogeneity, and the causality of the results still holds.Originality/valueThe findings provide clear evidence by emphasizing the importance of earnings management in the formulation of investor decisions.

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