Journal ArticleDOI
Market liquidity and volume around earnings announcements
Oliver Kim,Robert E. Verrecchia +1 more
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TLDR
In this paper, the authors suggest that earnings announcements provide information that allows certain traders to make judgements about a firm's performance that are superior to the judgements of other traders, and that there may be more information asymmetry at the time of an announcement than in nonannouncement periods.About:
This article is published in Journal of Accounting and Economics.The article was published on 1994-01-01. It has received 1790 citations till now. The article focuses on the topics: Liquidity crisis & Market liquidity.read more
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Illiquidity and stock returns: cross-section and time-series effects $
TL;DR: In this article, the authors show that expected market illiquidity positively affects ex ante stock excess return, suggesting that expected stock ex ante excess return partly represents an illiquid price premium, which complements the cross-sectional positive return-illiquidity relationship.
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Information Asymmetry, Corporate Disclosure and the Capital Markets: A Review of the Empirical Disclosure Literature
TL;DR: Corporate disclosure is critical for the functioning of an efficient capital market as mentioned in this paper, and firms provide disclosure through regulated financial reports, including the financial statements, footnotes, management discussion and analysis, and other regulatory filings.
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Information asymmetry, corporate disclosure, and the capital markets: A review of the empirical disclosure literature $
Paul M. Healy,Krishna G. Palepu +1 more
TL;DR: In this article, the authors provide a framework for analyzing managers' reporting and disclosure decisions in a capital markets setting, and identify key research questions and key researchquestions, concluding that current research has generated a number of useful insights.
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The economic implications of corporate financial reporting
TL;DR: This paper found that the majority of managers would avoid initiating a positive NPV project if it meant falling short of the current quarter's consensus earnings, and more than three-fourths of the surveyed executives would give up economic value in exchange for smooth earnings.
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Causes and Consequences of Earnings Manipulation: An Analysis of Firms Subject to Enforcement Actions by the SEC*
TL;DR: In this article, the authors investigate the extent to which the earnings manipulations can be explained by earnings management hypotheses and the relation between earnings manipulation and weaknesses in firms' internal governance structures, and the capital market consequences experienced by firms when the alleged earnings manipulation are made public.
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Bid, ask and transaction prices in a specialist market with heterogeneously informed traders
TL;DR: The presence of traders with superior information leads to a positive bid-ask spread even when the specialist is risk-neutral and makes zero expected profits as discussed by the authors, and the expectation of the average spread squared times volume is bounded by a number that is independent of insider activity.
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Disclosure, Liquidity, and the Cost of Capital
TL;DR: In this article, the authors studied the causes and consequences of a security's liquidity, especially the effect of future liquidity on the security's current price-equivalently the effect on its required expected rate of return, its cost of capital.
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A Theory of Intraday Patterns: Volume and Price Variability
Anat R. Admati,Paul Pfleiderer +1 more
TL;DR: In this paper, the authors developed a theory that concentrated trading patterns arise endogenously as a result of the strategic behavior of liquidity traders and informed traders and provided a partial explanation for some of the recent empitical findings concerning the patterns of volume and price variability in intraday transaction data.
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The Relation between Price Changes and Trading Volume: A Survey
TL;DR: In this paper, the authors reviewed previous and current research on the relation between price changes and trading volume in financial markets, and made four contributions: two empirical relations are established: volume is positively related to the magnitude of the price change and, in equity markets, to the price changes per se.