Stock Market Liquidity And Information Asymmetry Around Voluntary Earnings Announcements
Download Stock Market Liquidity And Information Asymmetry Around Voluntary Earnings Announcements full books in PDF, epub, and Kindle. Read online free Stock Market Liquidity And Information Asymmetry Around Voluntary Earnings Announcements ebook anywhere anytime directly on your device. Fast Download speed and no annoying ads. We cannot guarantee that every ebooks is available!
Author | : Faten Lakhal |
Publisher | : |
Total Pages | : 31 |
Release | : 2005 |
Genre | : |
ISBN | : |
This paper studies market liquidity and stock prices components of information asymmetry around non-mandated earnings announcements by focusing on effective bid-ask spreads and trading volumes. Using event study methodology for 309 voluntary earnings announcements from 1998 to 2001, we found that voluntary earnings disclosures exhibit significant stock market reactions around news releases. We also noticed a significant decrease in effective spreads and an increase in trading volumes when good and bad news are released. Moreover, investors react more aggressively to bad news announcements suggesting that these news are more credible. Panel-data regression analyses were also used to examine both categories of voluntary earnings announcements: earning forecasts and quarterly earning announcements separately. They show that quarterly announcements enhance market liquidity by reducing bid-ask spreads and increasing trading volumes in the announcement window. However, earnings forecasts exacerbate information asymmetry before and after the announcement date. This result suggests that earning forecasts are subject to earning manipulation and less credible, then for the market.
Author | : Charles M. C. Lee |
Publisher | : |
Total Pages | : 48 |
Release | : 1992 |
Genre | : Securities |
ISBN | : |
Author | : Jennifer Francis |
Publisher | : Now Publishers Inc |
Total Pages | : 97 |
Release | : 2008 |
Genre | : Business & Economics |
ISBN | : 1601981147 |
This review lays out a research perspective on earnings quality. We provide an overview of alternative definitions and measures of earnings quality and a discussion of research design choices encountered in earnings quality research. Throughout, we focus on a capital markets setting, as opposed, for example, to a contracting or stewardship setting. Our reason for this choice stems from the view that the capital market uses of accounting information are fundamental, in the sense of providing a basis for other uses, such as stewardship. Because resource allocations are ex ante decisions while contracting/stewardship assessments are ex post evaluations of outcomes, evidence on whether, how and to what degree earnings quality influences capital market resource allocation decisions is fundamental to understanding why and how accounting matters to investors and others, including those charged with stewardship responsibilities. Demonstrating a link between earnings quality and, for example, the costs of equity and debt capital implies a basic economic role in capital allocation decisions for accounting information; this role has only recently been documented in the accounting literature. We focus on how the precision of financial information in capturing one or more underlying valuation-relevant constructs affects the assessment and use of that information by capital market participants. We emphasize that the choice of constructs to be measured is typically contextual. Our main focus is on the precision of earnings, which we view as a summary indicator of the overall quality of financial reporting. Our intent in discussing research that evaluates the capital market effects of earnings quality is both to stimulate further research in this area and to encourage research on related topics, including, for example, the role of earnings quality in contracting and stewardship.
Author | : Yakov Amihud |
Publisher | : Now Publishers Inc |
Total Pages | : 109 |
Release | : 2006 |
Genre | : Business & Economics |
ISBN | : 1933019123 |
Liquidity and Asset Prices reviews the literature that studies the relationship between liquidity and asset prices. The authors review the theoretical literature that predicts how liquidity affects a security's required return and discuss the empirical connection between the two. Liquidity and Asset Prices surveys the theory of liquidity-based asset pricing followed by the empirical evidence. The theory section proceeds from basic models with exogenous holding periods to those that incorporate additional elements of risk and endogenous holding periods. The empirical section reviews the evidence on the liquidity premium for stocks, bonds, and other financial assets.
Author | : Craig Holden |
Publisher | : Now Publishers |
Total Pages | : 90 |
Release | : 2014-11-28 |
Genre | : Business & Economics |
ISBN | : 9781601988744 |
We provide a synthesis of the empirical evidence on market liquidity. The liquidity measurement literature has established standard measures of liquidity that apply to broad categories of market microstructure data. Specialized measures of liquidity have been developed to deal with data limitations in specific markets, to provide proxies from daily data, and to assess institutional trading programs. The general liquidity literature has established local cross-sectional patterns, global cross-sectional patterns, and time-series patterns.
Author | : François-Serge Lhabitant |
Publisher | : John Wiley & Sons |
Total Pages | : 502 |
Release | : 2008-01-09 |
Genre | : Business & Economics |
ISBN | : 0470181699 |
Brings together today's best financial minds across the world to discuss the issue of liquidity in today's markets. It is often proxied by trade-based measures (such as trading volume, frequency of trading, dollar value of shares trade, etc), order based measures and price impact measures.
Author | : Mr.Luis Brandao-Marques |
Publisher | : International Monetary Fund |
Total Pages | : 29 |
Release | : 2016-11-16 |
Genre | : Business & Economics |
ISBN | : 1475554699 |
Chile has a large but relatively illiquid stock market. Global factors such as global risk appetite and monetary policy in advanced economies are key cyclical determinants of liquidity in Chilean equities. Evidence from a cross-section of emerging markets suggests strong protection of minority shareholders can help improve stock market liquitidity. Currently, illiquid in Chilean may have to pay 31⁄2 percent more as cost of equity. Corporate governance should be improved, namely through the adoption of a stewardship code.
Author | : iMinds |
Publisher | : iMinds Pty Ltd |
Total Pages | : 5 |
Release | : |
Genre | : Business & Economics |
ISBN | : 1921798645 |
Learn about Mutual Funds with iMinds Money's insightful fast knowledge series. A mutual fund is an investment vehicle that allows a group of investors to pool their money, allowing a professional to collectively trade securities on their behalf in exchange for a small fee. The pooled funds are used to purchase a diverse range of assets and provide a return to the investor. Typically the assets purchased are shares of companies and so reflect share market movements, but some funds focus on other markets such as property. Although the term 'mutual fund' has specific meaning in United States law,
Author | : Kim Ittonen |
Publisher | : University of Vaasa |
Total Pages | : 211 |
Release | : 2009 |
Genre | : Auditing |
ISBN | : 9524762560 |
Tiivistelmä: Tilintarkastuskertomukset ja osakemarkkinat.
Author | : Theo Lynn |
Publisher | : Springer |
Total Pages | : 194 |
Release | : 2018-12-06 |
Genre | : Business & Economics |
ISBN | : 3030023303 |
This open access Pivot demonstrates how a variety of technologies act as innovation catalysts within the banking and financial services sector. Traditional banks and financial services are under increasing competition from global IT companies such as Google, Apple, Amazon and PayPal whilst facing pressure from investors to reduce costs, increase agility and improve customer retention. Technologies such as blockchain, cloud computing, mobile technologies, big data analytics and social media therefore have perhaps more potential in this industry and area of business than any other. This book defines a fintech ecosystem for the 21st century, providing a state-of-the art review of current literature, suggesting avenues for new research and offering perspectives from business, technology and industry.