Investor reaction to strategic emphasis on earnings numbers: An empirical study
We analyze the earnings information and stock prices of S&P500 firms and find that investors followingS&P500 stocks (i) respond more to pro forma earnings than to GAAP earnings, (ii) respond toan emphasis on pro forma earnings, and (iii) are fixated on pro forma earnings. We provide the firs...
| Main Authors: | , |
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| Format: | Journal Article |
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Vizja Press & IT
2013
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| Online Access: | http://hdl.handle.net/20.500.11937/47415 |
| _version_ | 1848757826052161536 |
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| author | Sadique, Shibley Rahman, M. |
| author_facet | Sadique, Shibley Rahman, M. |
| author_sort | Sadique, Shibley |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | We analyze the earnings information and stock prices of S&P500 firms and find that investors followingS&P500 stocks (i) respond more to pro forma earnings than to GAAP earnings, (ii) respond toan emphasis on pro forma earnings, and (iii) are fixated on pro forma earnings. We provide the firstdirect evidence that a strategic emphasis on earnings numbers may affect return volatility. Further,our results do not support the argument that a larger investor response to Street earnings might bedriven by large differences between the Street numbers and GAAP numbers. |
| first_indexed | 2025-11-14T09:34:15Z |
| format | Journal Article |
| id | curtin-20.500.11937-47415 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T09:34:15Z |
| publishDate | 2013 |
| publisher | Vizja Press & IT |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-474152017-09-13T14:12:15Z Investor reaction to strategic emphasis on earnings numbers: An empirical study Sadique, Shibley Rahman, M. fourth quarter earnings functional fixation hypothesis earnings press release stock market reaction emphasis on earnings numbers We analyze the earnings information and stock prices of S&P500 firms and find that investors followingS&P500 stocks (i) respond more to pro forma earnings than to GAAP earnings, (ii) respond toan emphasis on pro forma earnings, and (iii) are fixated on pro forma earnings. We provide the firstdirect evidence that a strategic emphasis on earnings numbers may affect return volatility. Further,our results do not support the argument that a larger investor response to Street earnings might bedriven by large differences between the Street numbers and GAAP numbers. 2013 Journal Article http://hdl.handle.net/20.500.11937/47415 10.5709/ce.1897-9254.89 Vizja Press & IT unknown |
| spellingShingle | fourth quarter earnings functional fixation hypothesis earnings press release stock market reaction emphasis on earnings numbers Sadique, Shibley Rahman, M. Investor reaction to strategic emphasis on earnings numbers: An empirical study |
| title | Investor reaction to strategic emphasis on earnings numbers: An empirical study |
| title_full | Investor reaction to strategic emphasis on earnings numbers: An empirical study |
| title_fullStr | Investor reaction to strategic emphasis on earnings numbers: An empirical study |
| title_full_unstemmed | Investor reaction to strategic emphasis on earnings numbers: An empirical study |
| title_short | Investor reaction to strategic emphasis on earnings numbers: An empirical study |
| title_sort | investor reaction to strategic emphasis on earnings numbers: an empirical study |
| topic | fourth quarter earnings functional fixation hypothesis earnings press release stock market reaction emphasis on earnings numbers |
| url | http://hdl.handle.net/20.500.11937/47415 |