IDEAS home Printed from https://ideas.repec.org/a/ids/injbaf/v11y2020i1p71-94.html
   My bibliography  Save this article

The earnings announcements consequences in public family firms

Author

Listed:
  • Elisabete F. Simões Vieira

Abstract

This paper investigates market reaction to earnings announcements made by public family firms, to see whether these announcements affect a firm's returns, liquidity or cost of capital. We apply an event study and panel data approach to a sample of Portuguese firms listed between 2000 and 2013. Overall, we find no support for the earnings-signalling hypothesis. Firm size and the fact that a Big-4 company audits a firm contribute positively to the firm performance. The results show no significant relationship between earnings changes and firm liquidity or the weighted average cost of capital and, as such, do not support the pecking order theory. Finally, we find no significant differences between family and non-family firms as regards performance, liquidity and cost of capital. This study is of interest to scholars and practitioners in the field of finance, particularly those focusing on the information content of earnings announcements and the differences between the effects of earnings announcements made by listed family and non-family firms.

Suggested Citation

  • Elisabete F. Simões Vieira, 2020. "The earnings announcements consequences in public family firms," International Journal of Banking, Accounting and Finance, Inderscience Enterprises Ltd, vol. 11(1), pages 71-94.
  • Handle: RePEc:ids:injbaf:v:11:y:2020:i:1:p:71-94
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=104484
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:injbaf:v:11:y:2020:i:1:p:71-94. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=277 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.