Aggregate market attention around earnings announcements

2020 ◽  
Vol 28 (4) ◽  
pp. 591-617
Author(s):  
William M. Cready ◽  
Abdullah Kumas
Keyword(s):  
Earnings Announcements ◽  
Equity Market ◽  
Future Research ◽  
Activity Levels ◽  
Investor Attention ◽  
Earnings Announcement ◽  
Content Type ◽  
Market Participants ◽  
Pricing Efficiency ◽  
The Impact

PurposeThis analysis is the first to explore the overall roles of the offsetting attraction and distraction influences of earnings news in shaping the level of attention given to the equity market by market participants.Design/methodology/approachWe use multivariate regression approach and examine how trading activity levels within the set of non-announcing firms varies with respect to collective measures of contemporaneous earnings announcement visibility. We employ attention and information transfer theories in our hypothesis development.FindingsThis analysis is the first to explore the overall roles of the offsetting attraction and distraction influences of earnings news in shaping the level of attention given to the equity market by market participants. Specifically, we examine how the number of earnings announcement activity affects investor attention as measured by trading volume given to the set of non-announcing firms. We find that while earnings announcement numbers lower trading volume responses to earnings news among announcing firms (consistent with Hirshleifer et al., 2009), their distractive influence does not carry over into the market as a whole. More importantly, investor attention to both the overall market and the larger subset of non-announcing firms increase in response to earnings news activity levels. However, after decomposing the announcers as same-industry and different-industry announcers, we find that investor attention to the non-announcing segment of the market increases with the number of same-industry announcers, but actually seems to decrease (i.e. they distract attention) with the number of different-industry announcers. We also find that the associated earnings surprise brings attention to non-announcing firms (consistent with earnings news is relevant to overall market price movements). Finally, we find that distraction effects are attenuated in the financial crisis period.Research limitations/implicationsA promising area of future research is to examine the relation between market pricing efficiency and aggregate earnings activity for the set of non-announcing firms. Although it will be a challenging task to measure pricing efficiency for the non-announcers, this will complement the prior literature only focusing on the announcing segment of the market.Practical implicationsFirst, instead of assessing the impact of number of earnings announcements on the subset of announcing firms, which is a micro-level perspective, we identify the impact of news arrivals on all firms in the market including the vastly larger set of non-announcing firms. Second, by decomposing the number of announcements into industry-related and -unrelated news we show that different types of news arrivals spark investor attention differently, suggesting the importance of categorizing the news into related and unrelated industries.Social implicationsA potential future area of research identified by our analysis is to investigate what type of investors' attention is distracted or attracted during the earnings announcements. A promising area of future research is to examine the relation between market pricing efficiency and aggregate earnings activity for the set of non-announcing firms.Originality/valueThis paper is the first one exploring the overall roles of the offsetting attraction and distraction influences of earnings announcements in shaping the level of investor attention given to the equity market by market participants. Our findings should be of interest to investors, analysts, security market regulators and researchers.

Effect of quarterly earnings announcement under different market conditions

2014 ◽  
Vol 6 (2) ◽  
pp. 128-154 ◽  
Author(s):  
Santu Das ◽  
Jamini Kanta Pattanayak ◽  
Pramod Pathak
Keyword(s):  
Event Study ◽  
Stock Price ◽  
Earnings Announcements ◽  
Market Condition ◽  
Market Conditions ◽  
Price Movement ◽  
Earnings Announcement ◽  
Content Type ◽  
Quarterly Earnings ◽  
The Impact

Purpose – The main purpose of this research study is to investigate the impact of quarterly earnings announcements on stock price movement of the firms constituting the SENSEX under two different market conditions – booming followed by recessionary. Analysis of price effect of quarterly earnings announcements during the five-year period prior to trading suspension, which is also characterized by a booming market condition have been made. Similar analysis during the five-year period following the trading suspension and marked by recessionary market condition has also been carried out side by side. Design/methodology/approach – Event study methodology using daily returns and market model has been used for the purpose of analyzing the quarterly earnings announcement effects on the security prices of the firms. A sign test has also been used along with the event study. Findings – The study reveals that quarterly earnings announcement does not have statistically significant effect on stock returns during the booming as well as the recessionary market conditions. The impact of quarterly earnings announcements on stock price movement of firms constituting the SENSEX has been similar for both periods undertaken in the study. Research limitations/implications – The study has been undertaken using the firms listed in BSE SENSEX. The effect of the quarterly earnings announcement with reference to firms listed in other indices, if covered, may provide different sets of results. Originality/value – The paper identifies the informational value of quarterly earnings announcement of BSE-SENSEX.

Online investment forum and the market response around earnings announcement in the Chinese stock markets

2019 ◽  
Vol 27 (4) ◽  
pp. 615-631 ◽  
Author(s):  
Qian Hao ◽  
Dayong Dong ◽  
Keke Wu
Keyword(s):  
Linear Regression Analysis ◽  
Earnings Announcements ◽  
Positive Association ◽  
Online Discussions ◽  
Policy Implications ◽  
Internet Service ◽  
Earnings Announcement ◽  
Content Type ◽  
Earnings Surprise ◽  
The Impact

Purpose This paper aims to study the following two questions. Do earnings announcements stimulate investors to participate in online discussions? Does online investment forum participation affect the market’s reaction to earnings news? Design/methodology/approach The authors collect all the online posts, which were related to the internet service companies and posted in a Chinese financial forum, guba.eastmoney.com (Guba), during the period between June 30, 2008 and December 31, 2015. Multiple linear regression analysis is used to test the questions. Findings The study finds that the earnings announcements induce online discussion. In addition, before the earnings announcement, online posting activity does not affect earnings response coefficient but can weaken the positive association between the magnitude of the upcoming earnings surprise and abnormal trading volume. In contrast, after the earnings announcement, online forum participation can facilitate the incorporation of earnings surprise into the price. Originality/value This study contributes to the literature studying the impact of social media on market reaction to earnings news by providing evidence that the price discovery process can be affected by the online investment forum. Several policy implications are also provided.

Insider trading in India – regulatory enforcement

2017 ◽  
Vol 24 (1) ◽  
pp. 48-55 ◽  
Author(s):  
Anil Kumar Manchikatla ◽  
Rajesh H. Acharya
Keyword(s):  
Emerging Markets ◽  
Insider Trading ◽  
Developed Countries ◽  
Future Research ◽  
Regulatory Enforcement ◽  
Content Type ◽  
Market Participants ◽  
New Methods ◽  
Foreign Institutional Investors ◽  
The Impact

Purpose The purpose of this paper is to study the effectiveness of insider trading enforcement actions in India and international dimensions. Design/methodology/approach The research is based on the insider trading regulations and amendments made during the period 1992-2015. Findings The notable observation of the study is the dearth of insider trading conviction and the paucity of prosecution for insider trading offences in India. It is difficult to resist the conclusion that surveillance and enforcement matter more than the drafting of the relevant statutes and regulations in emerging markets. Whereas, developed countries have a better record of prosecution than emerging markets. Research limitations/implications Future research may explore the factors that hinder effective regulation and recommend new methods to increase the impact of Securities and Exchange Board of India insider trading regulation. Originality/value The current paper presents guidance for the foreign institutional investors, regulators and market participants on insider trading regulation and prosecution in India.

Tone of earnings announcements in sin industries

2019 ◽  
Vol 27 (2) ◽  
pp. 228-246 ◽  
Author(s):  
Yan Luo ◽  
Linying Zhou
Keyword(s):  
Design Methodology ◽  
Ethical Issues ◽  
Earnings Announcements ◽  
Ceo Power ◽  
Earnings Announcement ◽  
Content Type ◽  
Ceo Tenure ◽  
Social And Ethical Issues ◽  
Industry Membership ◽  
The Impact

Purpose The purpose of this paper is to investigate the empirical association between the tone of earnings announcements and a company’s membership in a sin industry. Design/methodology/approach This study constructs a model of the determinants of earnings announcement tone to examine the impact of sin industry membership on earnings announcement tone. An interaction term between CEO power (CEO–chairman duality) and sin industry membership is used to test whether CEO power moderates the strength of the association. The earnings announcements tone is measured using the spread in the proportion of positive and negative words. The category of sin industry includes not only industries such as tobacco, gambling and alcohol, but also industries associated with emerging environmental, social, and ethical issues (i.e. firearms, oil and cement). Findings The analysis of a sample of US firms from the 1994 to 2013 period shows that the tone of earnings announcement is less optimistic for companies in sin industries, but this association is weaker for companies that are led by powerful CEOs. The results remain robust to alternative definitions of sin industry membership and CEO power (CEO tenure) and to alternative model specifications. Originality/value The findings suggest that although sin companies cannot change the nature of their business, the management of such companies, in general, uses a less aggressive tone in their earnings announcements. These results further investors’ understanding of sin companies’ reporting behavior.

scholarly journals Chinese students’ participation: the effect of cultural factors

2014 ◽  
Vol 56 (5) ◽  
pp. 430-446 ◽  
Author(s):  
Chris S. Hodkinson ◽  
Arthur E. Poropat
Keyword(s):  
Teaching Effectiveness ◽  
Educational Achievement ◽  
Chinese Students ◽  
Educational Practice ◽  
Chinese Student ◽  
Future Research ◽  
Electronic Interaction ◽  
Content Type ◽  
Cultural Elements ◽  
The Impact

Purpose – The purpose of this paper is to provide for Western educators of international Chinese and Confucian Heritage Culture (CHC) students the first integrated review of kiasu, the “fear of missing out”, and its consequences for learning, teaching, and future research. Design/methodology/approach – A review of the economic importance of international Chinese students is provided, followed by consideration of the pedagogical consequences of restricted participation in educational activities by the so-called “silent Chinese student”. Examination of research on international Chinese students and their source cultures established significant gaps and misunderstandings in the generally accepted understandings of CHCs, especially with respect to the actual practices used in Western and Chinese teaching. More importantly, the participation-related implications of kiasu within the context of broader cultural characteristics are described and implications drawn for teaching practices and research. Findings – While many Western university teachers are aware of the “silent Chinese student” phenomenon, few understand its underlying reasons, especially the kiasu mindset and its relationship to other cultural elements. Kiasu actively impedes the interaction of international Chinese students with their teachers and restricts collaboration with peers, thereby limiting educational achievement. Specific tactics for amelioration are reviewed and recommendations are provided, while an agenda for future research is outlined. Practical implications – Western teachers need to normalise and encourage Chinese student participation in class activities using tactics that have been demonstrated to improve outcomes for Chinese students, but that also assist students generally. These include both within-class and electronic interaction tools. Social implications – More culturally sensitive understanding of the impact of cultural differences on teaching effectiveness. While some effective responses to these already exist, further research is needed to expand the skill-set of Western teachers who work with international Chinese students. Originality/value – This paper provides the first systematic integration of the kiasu phenomenon with educational practice and research.

Transnationality in the XXI century. Concept and indicators

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Grazia Ietto-Gillies
Keyword(s):  
Structural Changes ◽  
Transnational Corporation ◽  
First Century ◽  
Future Research ◽  
Content Type ◽  
Low Degree ◽  
Fixed Assets ◽  
Inclusive Concept ◽  
The Impact

Purpose The purpose of this paper is to analyse the impact of major structural changes on the conceptualization of the transnational corporation (TNC) based on foreign direct investment (FDI) and on indicators of transnationality. Design/methodology/approach Analysis of three major structural changes which impact the current conception of transnationality. They are: the rise of digital companies; the increased role of finance in the economy; externalization of activities via non-equity modalities (NEMs) with an impact on FDI and on the labour market. Findings The paper finds that the current concept of transnationality needs widening to take account of companies with a low degree of fixed assets abroad such as the digital and the financial companies and those internationalizing via NEMs, as well as to take account of the evolving relationship between TNCs and labour. Research limitations/implications Future research along the lines proposed should consider: working explicitly with the new, inclusive concept of transnationality and arrive at an empirical estimate of the proposed indices of transnationality which modify and amplify the current United Nations Conference on Trade and Development indices. Social implications Useful for understanding the nature of transnationality in the twenty-first century and for developing policies. Originality/value The paper proposes a new concept of transnationality and of the TNC, one that allows for new ways of organizing direct business activities abroad. It also proposes broadening the list of indicators of transnationality.

Social capital in the theory and research of LIS professionals in the light of the literature on the subject. Review of current knowledge

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Maja Dorota Wojciechowska
Keyword(s):  
Social Capital ◽  
Current Knowledge ◽  
Future Research ◽  
Content Type ◽  
Individual Social Capital ◽  
Rural Libraries ◽  
The Subject ◽  
The Moment ◽  
The Impact

Purpose The purpose of the paper is to present the latest scholarly trends in the field of social capital in libraries, to review research concepts published by LIS professionals and to suggest further research possibilities in this area. Design/methodology/approach This paper presents a review and critical analysis of literature associated with research on social capital in libraries to highlight its importance for the development of LIS and its impact on the functioning of environments linked with various types of libraries. The goal of literature analysis was to determine the current condition of research on social capital in libraries. The main trends were identified and the need for further qualitative analyses, which are missing at the moment, was confirmed. Findings It was determined that, so far, LIS professionals have focussed mainly on the role of municipal libraries in developing social capital, the problem of building trust, especially in immigrant circles and the impact of libraries on promoting a civil society. Academic libraries, rural libraries, organisational capital in libraries and individual social capital of librarians were a much less frequent subject of research. The role of libraries in developing social capital in educational (primary and secondary education) and professional (non-university professionals) circles is practically non-existent in research, and it will require in-depth studies and analyses in the coming years. Originality/value This paper constitutes a synthetic review of the latest research concepts concerning social capital in libraries. It identifies the most important research trends and areas that so far have not been explored and suggests research methods to help LIS professionals design future research in this area more effectively.

CEO statements on racial inequity – (how) do they matter to shareholders?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Pyemo Afego ◽  
Imhotep Alagidede
Keyword(s):  
Chief Executive Officers ◽  
Social Issues ◽  
Chief Executive ◽  
Future Research ◽  
Research Approach ◽  
Content Type ◽  
Racial Injustice ◽  
Communication Decisions ◽  
Executive Officers ◽  
The Impact

Purpose The purpose of this study is to explore how citizen protests against perceived acts of racial injustice impact on share prices of companies who weigh in on the protests. In particular, corporate statements that directly address the issues around the protests are identified and possible mechanisms underlying how these may impact shareholder value are discussed. Design/methodology/approach The authors first use a qualitative research approach of content and sentiment analysis to track how companies or their chief executive officers (CEOs) present their stance against racial injustice, as represented by their use of linguistic markers. Then, the authors use an event study methodology to assess the response from stock market participants. Findings The findings suggest that CEOs primarily convey their stance using language that is emotive and empathic. In addition, shareholders earn a significant abnormal return of 2.13%, on average, in the three days following the release of the statements. Research limitations/implications This study considered only US-listed companies. The sample size, also, is relatively small. Institutional and cultural differences across countries may also vary. Thus, future research could explore the extent to which the findings generalize to other contexts. Practical implications Results provide insights to top managers who communicate with various stakeholders on emotionally charged social issues. Findings also offer insights on the timing of trades for investors and arbitrageurs. Social implications Findings contribute to the understanding of corporate behaviour in times of social upheaval. Insights from the study may also be used to inform corporate communication decisions about important social issues. Originality/value This study brings into focus the role that affective appeal and moral emotion can play in evoking motivation for corporate activism, and the impact that this has on investor opinions’ formation process.

A systematic review of e-tail product returns and an agenda for future research

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kamrul Ahsan ◽  
Shams Rahman
Keyword(s):  
Literature Review ◽  
Systematic Literature Review ◽  
Research Area ◽  
Future Research ◽  
Product Returns ◽  
Content Type ◽  
People Skills ◽  
New Research ◽  
Returns Management ◽  
The Impact

PurposeThis study conducts a systematic literature review of e-tail product returns research. E-tail product returns are essentially acquisition of products that have been sold through purely online or brick-and-click channels and then returned by consumer to business.Design/methodology/approachUsing a systematic literature review protocol, we identified 75 peer-reviewed articles on e-tail product returns, conducted bibliometric analysis and content analysis of the articles and summarised our findings.FindingsThe findings reveal that the subject of e-tail returns is a new research area; academics have started to investigate several aspects of e-tail returns through different research methodologies and theoretical foundations. Further research is required in leading e-commerce countries and on key areas such as omni-channel returns management, customer satisfaction and service, the impact of resources such as people skills, the benefits of technology and IT systems in managing e-tail returns.Practical implicationsThe study offers a summative account of current e-tail knowledge areas, which can serve as a reference guide for e-tailers to develop strategies for more efficient and competitive product returns.Originality/valueThis study contributes theoretically by developing clusters of key themes or knowledge areas about e-tail returns. It also provides a conceptual framework for e-tail returns management, which can be used as a springboard for further empirical research.

Public reassurance following a collective trauma event: a scoping review of the evidence to inform police practice

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Lyndal Hickey ◽  
Louise Hams ◽  
Lauren Kosta
Keyword(s):  
Scoping Review ◽  
Negative Impact ◽  
Traumatic Events ◽  
Future Research ◽  
Collective Trauma ◽  
Content Type ◽  
Community Attitudes ◽  
The Public ◽  
Police Agencies ◽  
The Impact

PurposeThis paper examines the empirical research on police reassurance following a collective trauma event (CTE).Design/methodology/approachUsing a scoping review methodology, this paper sought to establish the extent, range and nature of published literature on policing responses to collective traumatic events, and to identify key features of this form of direct practice. Included papers needed to focus on police responses oeassurance with the public related to events (pre-or post) that could be regarded as collective trauma events by nature or scale. Searches were conducted using the Web of Science, SCOPUS and PsychINFO databases for literature published between January 2000 and December 2019.FindingsFourteen articles met the inclusion criteria. The key themes identified: (1) measuring the impact of reassurance and community policing; (2) community attitudes to policing and social disorder/critical events; (3) police workforce responses to traumatic events; and (4) interventions to support police to respond to their community.Research limitations/implicationsFuture research needs to examine the elements that create a robust organisational infrastructure that can withstand the demands of policing in ordinary and extraordinary times. Fundamental to the studies in this review is the relationship between the police agencies and the community. The nature of this relationship and how it can be strengthened to ameliorate the negative impact of CTEs in communities needs further exploration.Originality/valueThis paper provides important findings that can inform future reassurance policing practice and research.

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