Informed trading around earnings announcements in Australia
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journal contribution
posted on 2024-11-01, 03:50 authored by Anh Le, Xiangkang YinXiangkang Yin, J Zhao© 2019 This study investigates informed trading around earnings announcements in the Australian market from 1997 to 2014. Among six investor groups, only the pre-announcement trading of Domestic Superannuation Funds (DSFs) has a significantly positive relationship with announcement return. This predictive relationship is more pronounced for firms with a poorer informational environment. DSFs are informed of both positive and negative news but they execute their trades earlier if the news is positive. They trade on their superior information concerning upcoming earnings and dividends as well. After announcements, they do not reverse their pre-announcement positions and trade in a news-momentum manner.
History
Journal
Pacific Basin Finance JournalVolume
58Article number
ARTN 101216Pagination
1 - 20Location
Amsterdam, The NetherlandsPublisher DOI
ISSN
0927-538XeISSN
1879-0585Language
EnglishPublication classification
C1 Refereed article in a scholarly journalPublisher
ELSEVIERUsage metrics
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Keywords
Social SciencesBusiness, FinanceBusiness & EconomicsEarnings announcementInstitutional investorSuperannuation fundForeign and domestic investorsInformed tradingINSTITUTIONAL INVESTORSSTOCK RETURNSPRIVATE INFORMATIONPERFORMANCEINVESTMENTNEWSDISCLOSUREVALUATIONBEHAVIORDepartment of Finance3501 Accounting, auditing and accountability3502 Banking, finance and investment
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