Bond and Stock Market Response to Unexpected Earnings Announcements

1993 ◽  
Vol 28 (4) ◽  
pp. 565 ◽  
Author(s):  
Sudip Datta ◽  
Upinder S. Dhillon
Keyword(s):  
Stock Market ◽  
Earnings Announcements ◽  
Market Response ◽  
Unexpected Earnings

Volatility spread and stock market response to earnings announcements

2020 ◽  
Vol 119 ◽  
pp. 105126 ◽  
Author(s):  
Qin Lei ◽  
Xuewu Wesley Wang ◽  
Zhipeng Yan
Keyword(s):  
Stock Market ◽  
Earnings Announcements ◽  
Market Response

Competing Earnings Announcements: Which Announcement Do Investors Process First?

2015 ◽  
Vol 91 (2) ◽  
pp. 441-462 ◽  
Author(s):  
James R. Frederickson ◽  
Leon Zolotoy
Keyword(s):  
Institutional Investors ◽  
Earnings Announcements ◽  
Additional Analysis ◽  
Limited Attention ◽  
Market Response ◽  
Individual Investors ◽  
Expected Cost ◽  
Earnings Announcement ◽  
Unexpected Earnings ◽  
Post Earnings Announcement Drift

ABSTRACT Consistent with investors having limited attention, we posit that when faced with competing earnings announcements, investors behave as if they queue the announcements based on a firm or earnings announcement attribute. We focus on two potential queuing attributes: (1) firm visibility, and (2) the expected cost of processing the earnings announcements. We find no support for queuing based on the latter, but find a statistically significant and economically meaningful queuing effect based on firm visibility. Earnings announcements made by firms that are more visible than a given firm—but not by firms that are less visible—mitigate the announcement window market response to that firm's unexpected earnings, with a corresponding magnification in its post-earnings announcement drift. Further, the effects of visibility-based queuing are more pronounced for days with greater clustering of earnings announcements. Additional analysis suggests that individual investors—not institutional investors—drive the queuing effect.

Stock Price Behavior Associated with Post-1974–75 LIFO Adoptions Announced at Alternative Disclosure Times

1996 ◽  
Vol 11 (4) ◽  
pp. 535-564 ◽  
Author(s):  
Morton Pincus ◽  
Charles E. Wasley
Keyword(s):  
Stock Prices ◽  
Stock Price ◽  
Earnings Announcements ◽  
Market Response ◽  
Price Behavior ◽  
Positive Information ◽  
Earnings Announcement ◽  
Earnings Growth ◽  
Adoption Decision ◽  
Annual Earnings

We examine the behavior of stock prices at the time of post-1974–75 LIFO adoption announcements. We exploit recent theoretical and empirical developments in the LIFO adoption literature in an attempt to resolve some of the mixed findings in Hand (1993). We study LIFO adoptions announced prior to as well as at the time of annual earnings announcements. Previous research has mostly centered on 1974–75 adoptions made at the time of annual earnings announcements. Our study of LIFO adoptions announced prior to annual earnings announcement dates enables us to provide evidence on whether the early announcement of a LIFO adoption is used by firms to signal positive information about earnings growth. Collectively, our results suggest that in explaining the market response to LIFO adoption announcements, extant models of the LIFO adoption decision do not fully capture the richness of differing inflationary environments or of alternative disclosure times.

scholarly journals Stock Market Response to Potash Mine Disasters

2017 ◽  
Author(s):  
Oskar Kowalewski ◽  
Piotr Spiewanowski
Keyword(s):  
Stock Market ◽  
Market Response ◽  
Potash Mine

scholarly journals Capital Market Response to the Change in the Dividend Policy: The Case of Slovenian Stock Market

2016 ◽  
Vol 8 (1) ◽  
pp. 42 ◽  
Author(s):  
Matjaž Mikluš ◽  
Zan Jan Oplotnik
Keyword(s):  
Stock Market ◽  
Capital Market ◽  
Stock Price ◽  
Dividend Policy ◽  
Market Response ◽  
Asymmetry Of Information ◽  
Price Increases ◽  
Signalling Theory ◽  
Stock Price Reaction ◽  
Dividend Increases

<p>The three basic dividend policy theories have a completely different approach to describing the influence of dividends payment on stock price, and on the value of the company. Numerous studies conducted in this area have led to almost as many derived dividend policy theories, which are more or less related to the basic three. As one of them Wang, Manry &amp; Wandler (2011) specify the dividend signalling theory, which is based particularly on the assumption of the asymmetry of information between the company management and the shareholders and in recent decades it has been studied by many authors, who mostly concluded that dividend increase has a positive stock price reaction, and vice versa, that dividend decrease results in stock price falls (as cited in Ross, 1977; Leland and Pyle, 1977; Grinblatt et al., 1984; Baker and Phillips, 1993; Rankine and Stice, 1997; Bechmann and Raaballe, 2007). For the purposes of our analysis we adopted the methodology of foreign researches and checked the existence of the dividend signalling theory in the Slovenian stock market. The Slovenian stock market is one of developing markets, and is particularly specific due to its small size and illiquidity. Our research resulted in no statistically significant stock price increases from company dividend increases, whereby we have refuted the research hypothesis and, consequently, the dividend signalling theory in the Slovenian stock market in the described period.</p>

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