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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Published in | American business review Vol. 20; no. 2; p. 33 |
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Main Authors | , , , |
Format | Journal Article |
Language | English |
Published |
West Haven
University of New Haven
01.06.2002
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Subjects | |
Online Access | Get full text |
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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. |
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ISSN: | 0743-2348 |