Journal ArticleDOI
Quarterly Financial Reports and the Stock Price Reaction at the Warsaw Stock Exchange
Reads0
Chats0
TLDR
In this article, the authors focus on the small emerging market in Poland, and search for the post-announcement drift of abnormal returns, similar to the one observed on well-developed and mature world markets.Abstract:
This paper deals with market reaction to announcements of quarterly earnings. We observe if information content of quarterly reports is accordingly reflected in stock prices, as theoretically implied by the Efficient Market Hypothesis. We focus on the small emerging market in Poland, and search for the post-announcement drift of abnormal returns, similar to the one observed on well-developed and mature world markets. We propose a relatively rare method of statistical verification of obtained results, tailored for specific characteristics and limitations resulting from conducting this kind of event studies on the small emerging market. The clearest finding of the paper is the significant post-announcement drift of negative abnormal returns in a group of companies that unexpectedly reported highly disappointing quarterly earnings.read more
Citations
More filters
The pricing of earnings : essays on the post-earnings announcement drift and earnings quality risk
TL;DR: In this paper, the authors investigated the relationship between accounting earnings and stock prices and found that Swedish investors demand a higher expected return for firms with poor earnings quality, i.e. firms associated with higher information risk.
Journal ArticleDOI
Generalized Behavioral Asset Pricing Model
TL;DR: The Generalized Behavioral Model (GBM) as mentioned in this paper describes how asset prices may be influenced by various behavioral heuristics and how the prices may deviate from fundamental values due to investors' irrational behavior.
Journal ArticleDOI
Do Demerger Announcements Impact Shareholders Wealth? An Empirical Analysis Using Event Study:
TL;DR: In this paper, the authors proposed that demergers are emerging as one of the important forms of corporate restructuring in India over the past two decades, and that there is exten...
Journal ArticleDOI
50 Years in PEAD Research
TL;DR: In this article, the authors present existing evidence supporting and contradicting post earnings announcement drift (PEAD) and various techniques used to verify the phenomenon and conclude that this strategy produces an abnormal return of between 2.6% and 9.37% per quarter, according to various authors.
References
More filters
Journal ArticleDOI
Efficient capital markets: a review of theory and empirical work*
TL;DR: Efficient Capital Markets: A Review of Theory and Empirical Work Author(s): Eugene Fama Source: The Journal of Finance, Vol. 25, No. 2, Papers and Proceedings of the Twenty-Eighth Annual Meeting of the American Finance Association New York, N.Y. December, 28-30, 1969 (May, 1970), pp. 383-417 as mentioned in this paper
Journal ArticleDOI
An empirical evaluation of accounting income numbers
Ray Ball,Philip Brown +1 more
TL;DR: In this article, it is argued that income numbers cannot be defined substantively, that they lack "meaning" and are therefore of doubtful utility, and the argument stems in part from the patchwork development of account-based theories.
Posted Content
Post-earnings-announcement drift - delayed price response or risk premium
TL;DR: In this paper, the authors seek to discriminate between competing explanations of post-earnings-announcement drift, and find that one class of explanations suggests that at least a portion of the price response to new information is delayed.
Journal ArticleDOI
Evidence that stock prices do not fully reflect the implications of current earnings for future earnings
TL;DR: This paper found that the three-day price reactions to announcements of earnings for quarters t + 1 through I + 4 are predictable, based on earnings of quarter r. Even more surprisingly, the signs and magnitudes of the three day reactions are related to the autocorrelation structure of earnings, as if stock prices fail to reflect the extent to which each firm's earnings series differs from a seasonal random walk.
Journal ArticleDOI
Common stock repurchases and market signalling
TL;DR: In this article, the authors examined the pricing behavior of securities of firms which repurchase their own shares and found that repurchases via tender offer are followed by abnormal increases in earnings per share and that mainly small firms engage in repurchase tender offers.