Post-announcement drift and income smoothing: Finnish evidence
Article Abstract:
The Finnish stock market reacts differently to earnings announcement between firms with naturally smoothed and non-smoothed income series. Natural smoothing involves inherent production of a smooth income stream by the firm's income process. For firms with non-smoothed income, the post-announcement unexpected return behavior of firms with positive earnings surprises is significantly positive, while the return of firms reporting negative earnings surprises is significantly negative. For firms with smooth income streams, there was no post-announcement drift reported.
Publication Name: Journal of Business Finance and Accounting
Subject: Business
ISSN: 0306-686X
Year: 1996
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The price linkages between country funds and national stock markets: evidence from cointegration and causality tests of Germany, Japan and UK funds
Article Abstract:
The cointegration scheme and causality between country funds and national stock prices are investigated. Unit root, cointegration and causality tests are performed using German, Japanese and British funds as input. Results show that the countries have a two-way causality with their national markets but only the UK has a similar causal relation with the US. Results indicate possible long-term portfolio gains by international diversification and short-term joint market inefficiency.
Publication Name: Journal of Business Finance and Accounting
Subject: Business
ISSN: 0306-686X
Year: 1996
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Investment analyst recommendations: a test of 'the announcement effect' and 'the valuable information effect.'
Article Abstract:
The effect of the dissemination of security analysts' investment recommendations on stock prices is examined. Findings showed that stock prices tended to overreact to investment analysts' recommendation in the short term. Analysis of the long-term effect of recommendations on stock prices confirmed previous studies. The buy portfolio performed better than the market portfolio.
Publication Name: Journal of Business Finance and Accounting
Subject: Business
ISSN: 0306-686X
Year: 1995
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