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Author: Edith S. Hotchkiss Publisher: ISBN: Category : Languages : en Pages :
Book Description
We examine whether institutional ownership composition is related to parameters of the market reaction to negative earnings announcements. When firms report earnings below analysts' expectations, the stock price response is more negative for firms with higher levels of ownership by momentum or aggressive growth investors. There is no evidence, however, that these institutions cause an quot;overreactionquot; to earnings news. Ownership structure is also related to trading volume and to stock price volatility on days around earnings announcements. Our findings are consistent with the idea that the composition of institutional shareholders effects stock price behavior around the release of corporate information.
Author: Edith S. Hotchkiss Publisher: ISBN: Category : Languages : en Pages :
Book Description
We examine whether institutional ownership composition is related to parameters of the market reaction to negative earnings announcements. When firms report earnings below analysts' expectations, the stock price response is more negative for firms with higher levels of ownership by momentum or aggressive growth investors. There is no evidence, however, that these institutions cause an quot;overreactionquot; to earnings news. Ownership structure is also related to trading volume and to stock price volatility on days around earnings announcements. Our findings are consistent with the idea that the composition of institutional shareholders effects stock price behavior around the release of corporate information.
Author: Silver Chung Publisher: ISBN: Category : Business enterprises Languages : en Pages : 79
Book Description
"Managers have substantial discretion in when to announce earnings during the day. While the prior literature has shown that the timing of announcements during the day can affect the stock market's reaction to earnings news, there is either mixed or weak empirical evidence on why a manager chooses a certain time of the day to announce earnings. In this paper, I examine whether institutional ownership affects firms' decisions to announce earnings after hours (AH). AH are largely dominated by institutional investors who better understand the implications of earnings news for firm value and stock prices. I argue that firms with greater institutional ownership announce earnings AH to promote institutional investors' trading, and therefore facilitate post-announcement price discovery and reduce price volatility. Using the annual reconstitution of the Russell 1000 and 2000 indexes which provides plausibly exogenous variation in institutional ownership, I find that firms with higher institutional ownership are more likely to announce earnings during an aftermarket session (i.e., AH after the market closes), but not during a premarket session (i.e., AH before the market opens). My analysis further shows that transient institutional ownership has a stronger influence on the likelihood of after-market announcements relative to quasi-indexer and dedicated institutional holdings, and that the effect of institutional ownership on the announcement timing is more pronounced when firms have bad earnings news or large transitory earnings components. Lastly, I find that announcing earnings during an after-market session indeed facilitates the post-announcement price discovery and reduces price volatility for firms with greater institutional ownership. Collectively, my findings suggest that institutional ownership influences firms' earnings announcement timing decisions"--Pages vii-viii.
Author: Nikolaos Karampatsas Publisher: ISBN: Category : Languages : en Pages : 51
Book Description
Using a unique database this study establishes a relationship between firm-specific investor sentiment and stock price movements around earnings announcements. We find that firm-specific investor sentiment is a key determinant of price adjustment in the context of an earnings surprise. Unsurprisingly, the effect of firm-specific investor sentiment dominates the effect of market-wide sentiment. We also provide evidence that the effect of firm-specific investor sentiment is more pronounced for stocks that are hard to value and difficult to arbitrage and stock price reactions are most marked for stocks with negative earnings announcements. Further we find evidence of mispricing and return reversals over the days following an earnings surprise.
Author: V. Mlonzi Publisher: ISBN: Category : Languages : en Pages : 25
Book Description
Management has a duty to inform both shareholders and investors about the state of health of a firm. Earnings announcements provide a yardstick that can be utilised by the market to assess the wealth and profitability of a firm. The purpose of the study was to investigate whether there are any significant abnormal returns around the public announcement of earnings and to establish whether the efficient capital market hypothesis applies to the small ALtX market.The study focused on all the companies listed on the JSE-ALtX that announced annual earnings between 1 January and 31 December 2009. The method used for calculating the expected returns was the Capital Asset Pricing Model (CAPM).Empirical evidence demonstrates that there is substantial negative share price reaction to earnings announcements on the small ALtX stock market. The ALtX also shows the weak form of market efficiency. The study concluded that during a recessionary period, shareholders' wealth is eroded in the small ALtX market; however, the weak form of market efficiency provides an opportunity for entrepreneurs and investors to exploit the market for profits when the market is performing well.
Author: Iris H-Y Chiu Publisher: Bloomsbury Publishing ISBN: 1847316042 Category : Law Languages : en Pages : 204
Book Description
The Foundations and Anatomy of Shareholder Activism examines the landscape of contemporary shareholder activism in the UK. The book focuses on minority shareholder activism in publicly listed companies. It argues that contemporary shareholder activism in the UK is dominated by two groups; one, the institutional shareholders whose shareholder activism is largely seen as a driving force for good corporate governance, and two, the hedge funds whose shareholder activism is based on value extraction and exit. The book provides a detailed examination of both types of shareholder activism, and discusses critically the nature of, motivations for and consequences following both types of shareholder activism. The book then locates both types of shareholder activism in the theory of the company and the fabric of company law, and argues that institutional shareholder activism based on exercising a voice at general meetings is well supported in theory and law. The call for institutions to engage in more informal forms of activism in the name of 'stewardship' may bring about challenges to the current patterns of activism that institutions engage in. The book argues, however, that a more cautious view of hedge fund activism and the pattern of value extraction and exit should be taken. More empirical evidence is likely to be necessary, however, to weigh up the long terms benefits and costs of hedge fund activism.
Author: Joshua Ronen Publisher: Springer Science & Business Media ISBN: 0387257713 Category : Business & Economics Languages : en Pages : 587
Book Description
This book is a study of earnings management, aimed at scholars and professionals in accounting, finance, economics, and law. The authors address research questions including: Why are earnings so important that firms feel compelled to manipulate them? What set of circumstances will induce earnings management? How will the interaction among management, boards of directors, investors, employees, suppliers, customers and regulators affect earnings management? How to design empirical research addressing earnings management? What are the limitations and strengths of current empirical models?
Author: Mason Andrew Carpenter Publisher: Edward Elgar Publishing ISBN: 0857933205 Category : Business & Economics Languages : en Pages : 457
Book Description
This Handbook presents original research and theory on executives, top management teams, and boards of directors and illustrates the vital importance of this field of study. Top management teams are responsible for the strategic choices and major decisions in organizations. These organizations are a reflection of the members that make up their strategic management. The roles top management play and the impact they have are clearly visible in firms around the world, both large and small. The international group of authors that comprise this volume address questions central to the field of strategy and strategic leadership. They review the determinants of top management team composition, their social networks, and executive dismissal; the psychological and personality profiles of top executives; the methodologies relevant to the study of top teams; and the roles of top executives in cross business unit collaboration, competitive behavior, and strategic entrepreneurship. Each chapter presents path-breaking research and provides a roadmap for new research avenues and agendas. Professors, students and researchers in the area of strategy, management and strategic leadership will find this book an invaluable resource.
Author: Agnieszka Bem Publisher: Springer ISBN: 3319922289 Category : Business & Economics Languages : en Pages : 283
Book Description
This volume covers the proceedings of the ZAFIN Finance and Sustainability conference, organized by the Wroclaw University of Economics in cooperation with the Corvinus University of Budapest and the University of Economics in Prague. The authors analyze a variety of issues related to recent finance problems, including corporate finance, public finance, monetary and fiscal policy issues, and risk management. The book also discusses topics related to sustainable finance, the transition to green economies, corporate sustainability and sustainable development. The target audience for this book includes researchers at universities and research and policy institutions, graduate students, and practitioners in economics, finance and international economics working for private or government institutions.
Author: Publisher: ISBN: 9781846632563 Category : Corporations Languages : en Pages : 83
Book Description
Dividend policy continues to be among the premier unsolved puzzles in finance. A number of theories have been advanced to explain dividend policy. This e-book briefly reviews the principal theories of payout policy and dividend policy and summarizes the empirical evidence on these theories. Empirical evidence is equivocal and the search for new explanation for dividends continues.
Author: Edith S. Hotchkiss
Author: Edith S. Hotchkiss
Author: Silver Chung
Author: Nikolaos Karampatsas
Author: V. Mlonzi
Author: Iris H-Y Chiu
Author: Joshua Ronen
Author: Mason Andrew Carpenter
Author: Agnieszka Bem
Author: 
Author: