The Impact of Earning Surprise on Return and Volatility : A Comparative study between US and Australia using tick by tick data

This research aims to evaluate and comparative the impact of earnings surprises on stock returns and volatility using high frequency data from stock markets in Australia and United States of America. Findings indicate that the correlation between earnings surprise and stock returns and volatility is...

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Main Author: Zaeem, Faz
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2015
Online Access:https://eprints.nottingham.ac.uk/28614/
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author Zaeem, Faz
author_facet Zaeem, Faz
author_sort Zaeem, Faz
building Nottingham Research Data Repository
collection Online Access
description This research aims to evaluate and comparative the impact of earnings surprises on stock returns and volatility using high frequency data from stock markets in Australia and United States of America. Findings indicate that the correlation between earnings surprise and stock returns and volatility is statistically significant in both markets. US stocks tend to respond more strongly to negative earnings surprises as compared to Australian stocks due to varying corporate governance and legal environments in the two countries. Within-day returns for stocks in both countries register mild responses to earnings surprise. Additionally, it is observed that earnings surprise tends to have a greater impact on stock volatility in the United States relative to the Australian market. The results also further validate the contribution of earnings forecasts in valuation of equity prices.
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spelling nottingham-286142017-12-29T03:07:07Z https://eprints.nottingham.ac.uk/28614/ The Impact of Earning Surprise on Return and Volatility : A Comparative study between US and Australia using tick by tick data Zaeem, Faz This research aims to evaluate and comparative the impact of earnings surprises on stock returns and volatility using high frequency data from stock markets in Australia and United States of America. Findings indicate that the correlation between earnings surprise and stock returns and volatility is statistically significant in both markets. US stocks tend to respond more strongly to negative earnings surprises as compared to Australian stocks due to varying corporate governance and legal environments in the two countries. Within-day returns for stocks in both countries register mild responses to earnings surprise. Additionally, it is observed that earnings surprise tends to have a greater impact on stock volatility in the United States relative to the Australian market. The results also further validate the contribution of earnings forecasts in valuation of equity prices. 2015-02 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/28614/1/ZaeemFaz.pdf Zaeem, Faz (2015) The Impact of Earning Surprise on Return and Volatility : A Comparative study between US and Australia using tick by tick data. [Dissertation (University of Nottingham only)]
spellingShingle Zaeem, Faz
The Impact of Earning Surprise on Return and Volatility : A Comparative study between US and Australia using tick by tick data
title The Impact of Earning Surprise on Return and Volatility : A Comparative study between US and Australia using tick by tick data
title_full The Impact of Earning Surprise on Return and Volatility : A Comparative study between US and Australia using tick by tick data
title_fullStr The Impact of Earning Surprise on Return and Volatility : A Comparative study between US and Australia using tick by tick data
title_full_unstemmed The Impact of Earning Surprise on Return and Volatility : A Comparative study between US and Australia using tick by tick data
title_short The Impact of Earning Surprise on Return and Volatility : A Comparative study between US and Australia using tick by tick data
title_sort impact of earning surprise on return and volatility : a comparative study between us and australia using tick by tick data
url https://eprints.nottingham.ac.uk/28614/