Does market openness mitigate the impact of culture? An examination of international momentum profits and post-earnings-announcement drift

2021 ◽  
pp. 101464
Author(s):  
Jiaqi Guo ◽  
Phil Holmes
Keyword(s):  
Earnings Announcement ◽  
Momentum Profits ◽  
Post Earnings Announcement Drift ◽  
The Impact

scholarly journals Post-Earnings Announcement Drift in Greece

2015 ◽  
Vol 18 (03) ◽  
pp. 1550019 ◽  
Author(s):  
William Forbes ◽  
George Giannopoulos
Keyword(s):  
Financial Reporting ◽  
Stock Prices ◽  
Stock Exchange ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Earnings Announcement ◽  
Financial Reporting Standards ◽  
Post Earnings Announcement Drift ◽  
Athens Stock Exchange ◽  
The Impact

This paper presents evidence regarding the post-earnings announcement drift (PEAD) anomaly for the Greek market in the years 2000–2006 (covering earnings announcements in the years 2001–2007). The impact of the introduction of International Financial Reporting Standards on the size and prevalence of the PEAD anomaly is examined. Unlike recent evidence for the US market we find PEAD to be alive and well, and of growing importance in our Greek sample. It may be the adoption of international financial reporting standards (IFRS) has served to reduce earnings predictability in Greece and thus enhance PEAD in the Athens stock exchange (ASE) market. This contrasts strongly with US evidence that the post-earnings-announcement drift anomaly is now waning as more efficient markets and smarter, fundamentals-based, traders arbitrage its impact on stock prices.

XBRL Implementation and Post-Earnings-Announcement Drift: The Impact of State Ownership in China

2016 ◽  
Vol 31 (1) ◽  
pp. 1-19 ◽  
Author(s):  
Songsheng Chen ◽  
Jun Guo ◽  
Xiaoxiao Tong
Keyword(s):  
Information Asymmetry ◽  
Emerging Market ◽  
State Ownership ◽  
Government Ownership ◽  
Earnings Announcement ◽  
Ownership Structures ◽  
Business Reporting ◽  
Post Earnings Announcement Drift ◽  
Mandatory Adoption ◽  
The Impact

ABSTRACT In this paper, we test the impact of XBRL (eXtensible Business Reporting Language) on information asymmetry in the emerging market of China. We focus on the association between XBRL and information asymmetry (proxied by Post-Earnings-Announcement Drift [PEAD]) across two ownership structures: state-owned enterprises (SOEs), which are dominant in China, and non-state-owned enterprises (non-SOEs). We find that information asymmetry diminishes significantly, as reflected by a significant decline in PEAD, after the mandatory adoption of XBRL, and it diminishes more significantly in SOEs than non-SOEs. Our results remain robust after we control for market and accounting factors that may influence PEAD. Our paper not only supports XBRL's role in improving the market efficiency of the emerging market, but also first documents the impact of government ownership on the implementation of XBRL.

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