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Information Content of Earnings Announcements: Evidence from After-Hours Trading


  • Jiang, Christine X.
  • Likitapiwat, Tanakorn
  • McInish, Thomas H.


We study after-hours trading (AHT), price contributions, and price discovery following quarterly earnings announcements released outside of the normal trading hours. For Standard & Poor’s (S&P) 500 index stocks from 2004–2008, AHT is heightened on announcement days. A significant portion of the price change and price discovery occurs immediately after the earnings releases. Prices in AHT show a large degree of informational efficiency, further demonstrating the importance of price discovery in AHT. We also provide evidence suggesting that firms prefer after-hours earnings announcements, as trades are mainly from informed traders, and those trades are relied upon to convey information to the general public.

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  • Jiang, Christine X. & Likitapiwat, Tanakorn & McInish, Thomas H., 2012. "Information Content of Earnings Announcements: Evidence from After-Hours Trading," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 47(06), pages 1303-1330, December.
  • Handle: RePEc:cup:jfinqa:v:47:y:2012:i:06:p:1303-1330_00

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    References listed on IDEAS

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    Cited by:

    1. Ibikunle, Gbenga, 2015. "Opening and closing price efficiency: Do financial markets need the call auction?," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 34(C), pages 208-227.
    2. repec:eee:finmar:v:35:y:2017:i:c:p:21-46 is not listed on IDEAS
    3. repec:eee:jimfin:v:79:y:2017:i:c:p:232-254 is not listed on IDEAS

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