An analysis of the impact of varying levels of interim disclosure on Finnish share prices within five days of the announcement

This study compares a controlled earning/price relationship existing in three regimes of voluntary interim disclosure. The existence of differences among the three levels of disclosure indicates the importance of interim reporting. Specifically, this study discovers that investors in the Helsinki Ex...

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Bibliographic Details
Published inAmerican business review Vol. 20; no. 2; p. 33
Main Authors Schadewitz, Hannu J, Kanto, Antti J, Kahra, Hannu, Blevins, Dallas R
Format Journal Article
LanguageEnglish
Published West Haven University of New Haven 01.06.2002
Subjects
Adjustment
Efficient markets
Emerging markets
Financial statements
Hypotheses
Impact analysis
Investments
Prices
Rates of return
Securities analysis
Securities markets
Statistical analysis
Stock exchanges
Stock prices
Studies
United States > US
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Summary:This study compares a controlled earning/price relationship existing in three regimes of voluntary interim disclosure. The existence of differences among the three levels of disclosure indicates the importance of interim reporting. Specifically, this study discovers that investors in the Helsinki Exchanges react to interim releases on the day they are published. The share price quickly rises above the association value. This confirms the finding of Debondt & Thaler (1985). Following that, the share prices gradually decline to the association value. This confirms the Daniel, Hirshleifer & Subrahmanyam (1998) finding. Thus the research reported here resolves an apparent empirical conflict. The two studies, simply, take measurements at different stages of the adjustment cycle.
ISSN:0743-2348