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Author Anna Agapova, A. ♦ Zhanel Mailibayeva, B. ♦ Lin, Steve ♦ Madura, Jeff
Source CiteSeerX
Content type Text
File Format PDF
Subject Domain (in DDC) Computer science, information & general works ♦ Data processing & computer science
Abstract Prior literature documents several market anomalies surrounding news announcements, such as the market’s under-reaction to earnings releases. Our study offers additional explanation of determinants of short-term market reaction to earnings announcements – investors ’ fixation on patterns of earnings. In the presence of clear earnings patterns, individual investors fail to incorporate information signals regarding company performance into their valuation of stocks. Investors ’ perceptions of established patterns in earnings and breaks in such patterns affect the processing of information released in earnings announcements, which results in differential market reaction between patterned and non-patterned firms. Breaks in earnings strings might be the driving force behind previously documented market anomalies.
Educational Role Student ♦ Teacher
Age Range above 22 year
Educational Use Research
Education Level UG and PG ♦ Career/Technical Study