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Variable trading hours and market reactions to earnings announcements

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  • Drummond, Philip A.

Abstract

This study examines the relationship between stock market trading hours and market reactions to earnings announcements. The analysis demonstrates that post-announcement non-trading hours diminish trading volume reactions associated with differential interpretations. Moreover, post-announcement non-trading hours facilitate timely price reactions.

Suggested Citation

  • Drummond, Philip A., 2023. "Variable trading hours and market reactions to earnings announcements," Economics Letters, Elsevier, vol. 229(C).
    • Handle: RePEc:eee:ecolet:v:229:y:2023:i:c:s0165176523002240
    DOI: 10.1016/j.econlet.2023.111199
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    References listed on IDEAS

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    1. Warren Bailey & Haitao Li & Connie X. Mao & Rui Zhong, 2003. "Regulation Fair Disclosure and Earnings Information: Market, Analyst, and Corporate Responses," Journal of Finance, American Finance Association, vol. 58(6), pages 2487-2514, December.
    2. Ahmed, Anwer S. & Schneible Jr., Richard A., 2007. "The impact of regulation Fair Disclosure on investors' prior information quality -- Evidence from an analysis of changes in trading volume and stock price reactions to earnings announcements," Journal of Corporate Finance, Elsevier, vol. 13(2-3), pages 282-299, June.
    3. Joshua Livnat & Richard R. Mendenhall, 2006. "Comparing the Post–Earnings Announcement Drift for Surprises Calculated from Analyst and Time Series Forecasts," Journal of Accounting Research, Wiley Blackwell, vol. 44(1), pages 177-205, March.
    4. Kim, O & Verrecchia, Re, 1991. "Trading Volume And Price Reactions To Public Announcements," Journal of Accounting Research, Wiley Blackwell, vol. 29(2), pages 302-321.
    5. Roni Michaely & Amir Rubin & Alexander Vedrashko, 2014. "Corporate Governance and the Timing of Earnings Announcements," Review of Finance, European Finance Association, vol. 18(6), pages 2003-2044.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Earnings announcements; Disclosure timing; Cyber-attacks;
    All these keywords.

    JEL classification:

    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading

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