Effect of risks on earnings and the US bank share valuation
The financial crisis of 2008 had a great impact on the banking industry of the United States. This paper looks at the impact of the financial risks on the share revaluation of commercial banks in United States. It is expected that the earnings announcements will affect investors' decisions to t...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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Universiti Putra Malaysia Press
2013
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| Online Access: | http://psasir.upm.edu.my/id/eprint/28291/ http://psasir.upm.edu.my/id/eprint/28291/1/28291.pdf |
| _version_ | 1848846076398796800 |
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| author | Cheng, Fan Fah Ramadilli Mohd, Shamsher Mohamad Md Nasir, Annuar |
| author_facet | Cheng, Fan Fah Ramadilli Mohd, Shamsher Mohamad Md Nasir, Annuar |
| author_sort | Cheng, Fan Fah |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | The financial crisis of 2008 had a great impact on the banking industry of the United States. This paper looks at the impact of the financial risks on the share revaluation of commercial banks in United States. It is expected that the earnings announcements will affect investors' decisions to trade in bank shares. The Earnings Response Coefficients (ERCs) are applied in this paper to ascertain whether the estimated financial risks have incremental information content beyond the reported earnings. The findings support the notion that investors in the United States do look beyond the reported numbers and look for credit, market and price risk significantly in the earnings response valuation among other financial risks variables. |
| first_indexed | 2025-11-15T08:56:57Z |
| format | Article |
| id | upm-28291 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T08:56:57Z |
| publishDate | 2013 |
| publisher | Universiti Putra Malaysia Press |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-282912015-09-21T02:33:53Z http://psasir.upm.edu.my/id/eprint/28291/ Effect of risks on earnings and the US bank share valuation Cheng, Fan Fah Ramadilli Mohd, Shamsher Mohamad Md Nasir, Annuar The financial crisis of 2008 had a great impact on the banking industry of the United States. This paper looks at the impact of the financial risks on the share revaluation of commercial banks in United States. It is expected that the earnings announcements will affect investors' decisions to trade in bank shares. The Earnings Response Coefficients (ERCs) are applied in this paper to ascertain whether the estimated financial risks have incremental information content beyond the reported earnings. The findings support the notion that investors in the United States do look beyond the reported numbers and look for credit, market and price risk significantly in the earnings response valuation among other financial risks variables. Universiti Putra Malaysia Press 2013-10 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/28291/1/28291.pdf Cheng, Fan Fah and Ramadilli Mohd, Shamsher Mohamad and Md Nasir, Annuar (2013) Effect of risks on earnings and the US bank share valuation. Pertanika Journal of Social Sciences & Humanities, 21 (spec. Oct.). pp. 19-30. ISSN 0128-7702; ESSN: 2231-8534 http://www.pertanika.upm.edu.my/Pertanika%20PAPERS/JSSH%20Vol.%2021%20%28S%29%20Oct.%202013/02%20Page%2019-30.pdf |
| spellingShingle | Cheng, Fan Fah Ramadilli Mohd, Shamsher Mohamad Md Nasir, Annuar Effect of risks on earnings and the US bank share valuation |
| title | Effect of risks on earnings and the US bank share valuation |
| title_full | Effect of risks on earnings and the US bank share valuation |
| title_fullStr | Effect of risks on earnings and the US bank share valuation |
| title_full_unstemmed | Effect of risks on earnings and the US bank share valuation |
| title_short | Effect of risks on earnings and the US bank share valuation |
| title_sort | effect of risks on earnings and the us bank share valuation |
| url | http://psasir.upm.edu.my/id/eprint/28291/ http://psasir.upm.edu.my/id/eprint/28291/ http://psasir.upm.edu.my/id/eprint/28291/1/28291.pdf |