Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

The Stock Market’s Reaction to Accounting Information: The Cases of Chile and Peru

The Stock Market’s Reaction to Accounting Information: The Cases of Chile and Peru PurposeTo analyze the stock price and volume reactions around firms’ earnings announcement dates in two Latin American stock markets: Chile and Peru.Design/methodology/approachThis study uses multivariate regression analysis to determine the impact of accounting information on stock prices and volume traded around the firms’ earnings announcement dates.FindingsWe find that quarterly earnings surprises explain stock abnormal returns and abnormal trading volumes around the earnings announcement dates in the Santiago (Chile) and Lima (Peru) stock exchanges. We also find that these two effects are driven by small firms.Originality/valueThis is one of the first articles to study the price and volume reactions to accounting information in Latin American stock markets. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Accounting in Emerging Economies Emerald Publishing

The Stock Market’s Reaction to Accounting Information: The Cases of Chile and Peru

Loading next page...
 
/lp/emerald-publishing/the-stock-market-s-reaction-to-accounting-information-the-cases-of-FT7KUmCCEA

References (29)

Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
2042-1168
DOI
10.1108/JAEE-11-2013-0054
Publisher site
See Article on Publisher Site

Abstract

PurposeTo analyze the stock price and volume reactions around firms’ earnings announcement dates in two Latin American stock markets: Chile and Peru.Design/methodology/approachThis study uses multivariate regression analysis to determine the impact of accounting information on stock prices and volume traded around the firms’ earnings announcement dates.FindingsWe find that quarterly earnings surprises explain stock abnormal returns and abnormal trading volumes around the earnings announcement dates in the Santiago (Chile) and Lima (Peru) stock exchanges. We also find that these two effects are driven by small firms.Originality/valueThis is one of the first articles to study the price and volume reactions to accounting information in Latin American stock markets.

Journal

Journal of Accounting in Emerging EconomiesEmerald Publishing

Published: Aug 8, 2016

There are no references for this article.