Market responses to unexpected earnings of
| dc.contributor.author | Laura Schaffer, Laura Schaffer | |
| dc.date.accessioned | 2011-06-10T12:44:03Z | |
| dc.date.available | 2011-06-10T12:44:03Z | |
| dc.date.issued | 2011-06-10 | |
| dc.description | MBA - WBS | en_US |
| dc.description.abstract | The presence of a predictable share price response to a surprise in announced earnings by listed companies has been documented in US equity markets since 1968. This research investigated whether the presence of a positive or negative earnings surprise for companies listed on the JSE Securities Exchange resulted in an equivalent predictable share price response. The research was conducted on a sample of 112 companies listed on the JSE Securities Exchange between the period 1 February 2001 and 8 August 2007. The study analysed share price responses to 946 earnings surprise events over the three-day trading window around the actual earnings announcement date. Sell-side analyst earnings forecasts as published on INET Bridge were used as a proxy for the earnings expected by the market at the time of the company earnings announcement. The results of the event study showed a weakly positive share price response to a positive earnings surprise, the presence of which was not sustained once a few extreme values were excluded from the sample. The event study results for negative earnings surprises were more conclusive in showing no predictable significant share price response. | en_US |
| dc.identifier.uri | http://hdl.handle.net/10539/10088 | |
| dc.language.iso | en | en_US |
| dc.subject | Share price movements | en_US |
| dc.subject | Johannesburg Securities Exchange | en_US |
| dc.title | Market responses to unexpected earnings of | en_US |
| dc.type | Thesis | en_US |