Does Earnings Guidance Affect Market Returns? The Nature and Information Content of Aggregate Earnings Guidance

2006 ◽  
Author(s):  
Carol Anilowski Cain ◽  
Mei Feng ◽  
Douglas J. Skinner
Keyword(s):  
Information Content ◽  
Earnings Guidance ◽  
Market Returns ◽  
Aggregate Earnings

scholarly journals Another Look at the Macroeconomic Information Content of Aggregate Earnings: Evidence from the Labor Market

2020 ◽  
Author(s):  
Rebecca N. Hann ◽  
Congcong Li ◽  
Maria Ogneva
Keyword(s):  
Labor Market ◽  
Information Content ◽  
Job Creation ◽  
Job Destruction ◽  
Special Items ◽  
Macroeconomic Information ◽  
Earnings Components ◽  
Aggregate Earnings ◽  
Core Earnings ◽  
Near Term

We examine the macroeconomic information content of aggregate earnings from the labor market's perspective. We use insights from the labor economics literature to characterize the information contained in aggregate GAAP earnings and its components that is relevant for predicting aggregate job creation and destruction. Our results suggest that not only does aggregate earnings news convey information about future labor market aggregates, but its information content is incremental to other macroeconomic variables at near-term horizons. Further, the source of this information stems primarily from two earnings components: aggregate core earnings and special items. Shocks to core earnings signal persistent changes in economy-wide profitability that predict aggregate job creation up to four quarters ahead, while shocks to special items predict job destruction up to one quarter. Taken together, our results suggest that aggregate earnings contain useful information about future labor market conditions, with the nature of such information varying across earnings components.

Is User-Generated Twittersphere Activity Associated with Stock Market Reactions to 8-K Filings?

2021 ◽  
Author(s):  
ROGER DEBRECENY ◽  
Asheq Rahman ◽  
TAWEI WANG
Keyword(s):  
Information Content ◽  
Trading Volume ◽  
Abnormal Returns ◽  
Market Returns ◽  
Stock Valuation ◽  
Market Reactions ◽  
Stock Liquidity ◽  
Economic Significance ◽  
Corporate Announcements ◽  
Stock Market Reactions

Prior studies have demonstrated that company-generated tweets as a device for the dissemination of corporate announcements help reduce information asymmetry. This paper demonstrates that user-generated tweets around corporate announcements have information content in addition to the information content of the announcement itself. Using a sample of S&P 1500 firms, we test the effects of abnormal levels of user-generated tweets and abnormal sentiment in the tweets over the three days surrounding 8-K filings of unanticipated events on market returns and liquidity of stocks. Results show that abnormal levels of user-generated tweets are positively associated with both the absolute cumulative abnormal returns and cumulative abnormal trading volume. We also find an indication of a cautionary stance by the market when sentiment is negative around the announcements. Our results have economic significance from both the stock valuation and the stock liquidity perspectives.

scholarly journals La Réaction Des Cours Boursiers Suite À Une Nouvelle Annonce Des Entreprises: Cas De La Bourse Régionale Des Valeurs Mobilières (BRVM)

2017 ◽  
Vol 13 (22) ◽  
pp. 282
Author(s):  
Dadem Kemgou, Edouard Guilaire ◽  
Manetsa, Eloge Lord ◽  
Djoutsa Wamba, Léopold ◽  
Kamdem, David
Keyword(s):  
Stock Market ◽  
Information Content ◽  
Stock Exchange ◽  
Event Studies ◽  
Series Data ◽  
Market Returns ◽  
Stock Market Returns ◽  
Share Prices

The purpose of this article is to highlight the reaction of share prices following the publication of dividends on the regional stock exchange (RSESS). To achieve the objective of our study, daily profitability series data were used over the period from January 1998 to December 2007. The methodology of the event studies was used and there are various ways to incorporate the "Event in the prices. It is accepted that the effect of the announcement of the dividend for all the securities is positive despite imperfections in the reaction of the markets. Consequently, the publication of dividends has an impact on stock market returns. The hypothetical information content of the dividend (ICHD) is therefore accepted.

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