Accounting earnings response coefficient: an extension to banking shares in Asia Pacific countries
This paper reports new finding on earnings response coefficients for banking firms on how disclosures on total earnings and disaggregated fee earnings are used by investors to change share prices prior to earnings disclosures. The information relating to total earnings influences share prices signif...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Elsevier
2011
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| Online Access: | http://psasir.upm.edu.my/id/eprint/22753/ http://psasir.upm.edu.my/id/eprint/22753/1/Accounting%20earnings%20response%20coefficient%20an%20extension%20to%20banking%20shares%20in%20Asia%20Pacific%20countries.pdf |
| _version_ | 1848844571264417792 |
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| author | Syed Mohamed, Mohamed Ariff Cheng, Fan Fah |
| author_facet | Syed Mohamed, Mohamed Ariff Cheng, Fan Fah |
| author_sort | Syed Mohamed, Mohamed Ariff |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | This paper reports new finding on earnings response coefficients for banking firms on how disclosures on total earnings and disaggregated fee earnings are used by investors to change share prices prior to earnings disclosures. The information relating to total earnings influences share prices significantly in all four banking sectors studied, all of which have sufficiently liberalized capital markets. Australian investors appear to use information on disaggregated non-interest fee income to revise share prices significantly: not so in other markets. The investors in Malaysia and South Korea appear to consider changes in fee income as bad news with negative price impact, anomalous to theory. The Australian investors appear to regard both total and fee incomes as equally important whereas investors in other markets either ignore or consider changes in fee income as bad news for share valuation. This study extends the literature on this topic from non-bank to banking firms. |
| first_indexed | 2025-11-15T08:33:02Z |
| format | Article |
| id | upm-22753 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T08:33:02Z |
| publishDate | 2011 |
| publisher | Elsevier |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-227532017-10-30T03:33:51Z http://psasir.upm.edu.my/id/eprint/22753/ Accounting earnings response coefficient: an extension to banking shares in Asia Pacific countries Syed Mohamed, Mohamed Ariff Cheng, Fan Fah This paper reports new finding on earnings response coefficients for banking firms on how disclosures on total earnings and disaggregated fee earnings are used by investors to change share prices prior to earnings disclosures. The information relating to total earnings influences share prices significantly in all four banking sectors studied, all of which have sufficiently liberalized capital markets. Australian investors appear to use information on disaggregated non-interest fee income to revise share prices significantly: not so in other markets. The investors in Malaysia and South Korea appear to consider changes in fee income as bad news with negative price impact, anomalous to theory. The Australian investors appear to regard both total and fee incomes as equally important whereas investors in other markets either ignore or consider changes in fee income as bad news for share valuation. This study extends the literature on this topic from non-bank to banking firms. Elsevier 2011 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/22753/1/Accounting%20earnings%20response%20coefficient%20an%20extension%20to%20banking%20shares%20in%20Asia%20Pacific%20countries.pdf Syed Mohamed, Mohamed Ariff and Cheng, Fan Fah (2011) Accounting earnings response coefficient: an extension to banking shares in Asia Pacific countries. Advances in Accounting, incorporating Advances in International Accounting, 27 (2). pp. 346-354. ISSN 0882-6110 http://www.sciencedirect.com/science/article/pii/S0882611011000423?via%3Dihub#! 10.1016/j.adiac.2011.08.002 |
| spellingShingle | Syed Mohamed, Mohamed Ariff Cheng, Fan Fah Accounting earnings response coefficient: an extension to banking shares in Asia Pacific countries |
| title | Accounting earnings response coefficient: an extension to banking shares in Asia Pacific countries |
| title_full | Accounting earnings response coefficient: an extension to banking shares in Asia Pacific countries |
| title_fullStr | Accounting earnings response coefficient: an extension to banking shares in Asia Pacific countries |
| title_full_unstemmed | Accounting earnings response coefficient: an extension to banking shares in Asia Pacific countries |
| title_short | Accounting earnings response coefficient: an extension to banking shares in Asia Pacific countries |
| title_sort | accounting earnings response coefficient: an extension to banking shares in asia pacific countries |
| url | http://psasir.upm.edu.my/id/eprint/22753/ http://psasir.upm.edu.my/id/eprint/22753/ http://psasir.upm.edu.my/id/eprint/22753/ http://psasir.upm.edu.my/id/eprint/22753/1/Accounting%20earnings%20response%20coefficient%20an%20extension%20to%20banking%20shares%20in%20Asia%20Pacific%20countries.pdf |