Who trades and who provides liquidity around unscheduled corporate announcements?

2021 ◽  
Author(s):  
Samarpan Nawn ◽  
Ashok Banerjee
Keyword(s):  
Corporate Announcements

Effects Behind Words: Quantifying Qualitative Information in Corporate Announcements

2011 ◽  
Author(s):  
Michael Liebmann ◽  
Michael Hagenau ◽  
Matthias Häußler ◽  
Dirk Neumann
Keyword(s):  
Qualitative Information ◽  
Corporate Announcements

The speed of stock price adjustment to corporate announcements: Insights from Turkey

2020 ◽  
pp. 100778
Author(s):  
Oguz Ersan ◽  
Serif Aziz Simsir ◽  
Koray D. Simsek ◽  
Afan Hasan
Keyword(s):  
Stock Price ◽  
Price Adjustment ◽  
Corporate Announcements ◽  
Stock Price Adjustment

High-Frequency Measures of Informed Trading and Corporate Announcements

2018 ◽  
Vol 31 (6) ◽  
pp. 2326-2376 ◽  
Author(s):  
Michael J. Brennan ◽  
Sahn-Wook Huh ◽  
Avanidhar Subrahmanyam
Keyword(s):  
High Frequency ◽  
Informed Trading ◽  
Corporate Announcements

scholarly journals Factors Mitigating Firm-specific Information Asymmetry and Target Price Accuracy in India

2017 ◽  
Vol 42 (4) ◽  
pp. 220-233
Author(s):  
Samie Ahmed Sayed ◽  
Latha Sreeram
Keyword(s):  
Emerging Markets ◽  
Information Asymmetry ◽  
Specific Information ◽  
Forecast Horizon ◽  
Target Price ◽  
Analyst Coverage ◽  
Corporate Announcements ◽  
Equity Research ◽  
Research Analysts ◽  
One Year

Executive Summary Over the last decade, efforts have been made to improve the quality of financial reporting and corporate governance standards prevailing in emerging markets. Even after 20 years of globalization, emerging markets continue to trade as a separate class ( Bekaert & Harvey, 2014 ). On account of a weak regulatory environment, firm-specific information asymmetry is expected to be on the higher side as compared to developed markets. In such an environment, any factors which mitigate information asymmetry may help improve efficiency of information providers such as equity research analysts. The role of equity research analysts is to process financial information and provide estimates which may be used by investors to make informed investment decisions. This study investigates whether the factors which mitigate firm-specific information asymmetry improve analyst target price accuracy in India. We expect sophisticated financial intermediaries such as equity research analysts to produce more accurate target price forecasts for firms with higher frequency of corporate announcements, higher analyst coverage, and higher foreign institutional holdings. Past research suggests that these three factors reduce information asymmetry and this reduction could possibly help analysts produce superior results. Our results show that higher frequency of corporate announcements creates short-term noise which reduces target price accuracy at the end of one-year forecast horizon. Our findings reveal that higher analyst coverage leads to better flow of firm-specific private information and improves target price accuracy anytime during or at the end of one year. We report that higher foreign institutional holding possibly improves stock liquidity, attracting more traders, which eventually leads to better target price accuracy at the end of forecast horizon. Our key finding is that there is a reduction in firm-specific information asymmetry due to the presence of more number of analysts and higher percentage of institutional holding.

scholarly journals Effectiveness of Technical Analysis Signals Around the Earning Announcements in Malaysian Stock Market

2018 ◽  
Vol 7 (3.21) ◽  
pp. 109
Author(s):  
Kelvin Lee Yong Ming ◽  
Mohamad Jais
Keyword(s):  
Stock Market ◽  
Stock Exchange ◽  
Moving Average ◽  
Technical Analysis ◽  
Relative Strength ◽  
Kuala Lumpur ◽  
Earning Announcement ◽  
Strength Index ◽  
Corporate Announcements ◽  
Technical Indicator

Technical analysis is an analysis that widely applied by the investor in the stock market. However, various corporate announcements could cause the market to react, and the most significant corporate announcement is the earnings announcement (1). Thus, this study examines the effectiveness of technical analysis signals around the earning announcements dates in Malaysian stock market. In doing so, this study applied and tested four technical indicators, namely Simple Moving Average (SMA), Relative Strength Index (RSI), Stochastic (K line), and Moving Average Convergence/Divergence (MACD) in Malaysian stock market. The sample of this study consisted of 30 largest capitalization companies from the main market of Kuala Lumpur Stock Exchange (KLSE). Meanwhile, the sample period covered from 2nd January 2014 to 31st March 2016. This study found that Moving Average Convergence/Divergence (MACD) significantly produced higher returns as compared to the other technical indicator before the earning announcement dates in financial year 2014 and 2015. The combined indicator of MA-MACD also found to have higher return in financial year 2015. The findings conclude that the technical analysis signals can be used to generate returns before earning announcement dates.  

Intermarket sweep order trade size clustering around corporate announcements

2019 ◽  
Vol 51 (48) ◽  
pp. 5258-5267
Author(s):  
Vinh Huy Nguyen ◽  
Richard Holowczak ◽  
Suchismita Mishra
Keyword(s):  
Trade Size ◽  
Corporate Announcements

The Speed of Stock Price Adjustment to Corporate Announcements: Insights from Turkey

2020 ◽  
Author(s):  
Oguz Ersan ◽  
Serif Aziz Simsir ◽  
Koray D. Simsek ◽  
Afan Hasan
Keyword(s):  
Stock Price ◽  
Price Adjustment ◽  
Corporate Announcements ◽  
Stock Price Adjustment

Twitter-Based Dissemination of Corporate Disclosure and the Intervening Effects of Firms' Visibility: Evidence from Australian-Listed Companies

2014 ◽  
Vol 29 (2) ◽  
pp. 107-136 ◽  
Author(s):  
Maria Prokofieva
Keyword(s):  
Information Asymmetry ◽  
Stock Exchange ◽  
Listed Companies ◽  
Negative Association ◽  
Corporate Disclosure ◽  
Financial Analyst ◽  
Analyst Coverage ◽  
Business Press ◽  
Corporate Announcements ◽  
Twitter Activity

ABSTRACT This paper investigates the effect of dissemination of corporate disclosure via Twitter. In particular, the study is focused on listed companies in Australia that employed Twitter as a secondary dissemination channel for corporate announcements in 2008–2013. Based on a sample of 3,516 announcements at the Australian Stock Exchange (ASX) related to 109 listed companies, the research employs the Investor Recognition Hypothesis to investigate the effect of Twitter activity on the information asymmetry proxied by abnormal spread (SpreadAbn). The findings show that there is a negative association between SpreadAbn and tweets posted by a firm during the announcement period. Further analysis shows that this association is stronger for firms less visible through business press or financial analyst coverage. The study concludes that while corporate announcements are publicly available through the ASX platform, dissemination of corporate announcements through Twitter allows companies to attract investors' attention and decrease information asymmetry.

Is User-Generated Twittersphere Activity Associated with Stock Market Reactions to 8-K Filings?

2021 ◽  
Author(s):  
ROGER DEBRECENY ◽  
Asheq Rahman ◽  
TAWEI WANG
Keyword(s):  
Information Content ◽  
Trading Volume ◽  
Abnormal Returns ◽  
Market Returns ◽  
Stock Valuation ◽  
Market Reactions ◽  
Stock Liquidity ◽  
Economic Significance ◽  
Corporate Announcements ◽  
Stock Market Reactions

Prior studies have demonstrated that company-generated tweets as a device for the dissemination of corporate announcements help reduce information asymmetry. This paper demonstrates that user-generated tweets around corporate announcements have information content in addition to the information content of the announcement itself. Using a sample of S&P 1500 firms, we test the effects of abnormal levels of user-generated tweets and abnormal sentiment in the tweets over the three days surrounding 8-K filings of unanticipated events on market returns and liquidity of stocks. Results show that abnormal levels of user-generated tweets are positively associated with both the absolute cumulative abnormal returns and cumulative abnormal trading volume. We also find an indication of a cautionary stance by the market when sentiment is negative around the announcements. Our results have economic significance from both the stock valuation and the stock liquidity perspectives.

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