CEO Confidence and Stock Returns
In this research, I explore whether announcements of CEO confidence contain new information for investors. Information asymmetry implies that insiders such as Chief Executive Officers should have better information regarding the firm prospects than the average stock market participant. Thus, announcements of CEO perceptions may provide valuable insights to investors. Utilizing The Conference Board quarterly measures of CEO confidence and CEO six-month economic outlook, I find significant correlations between changes in CEO outlook and the announcement date returns on three major stock market indexes. These correlations are larger and more significant for indexes of smaller companies, implying announcements of CEO confidence provide unique and valuable information to stock markets.
|Date of creation:||Aug 2008|
|Date of revision:||Aug 2008|
|Contact details of provider:|| Postal: Dockery 300, Warrensburg, MO 64093|
Phone: (660) 543-4246
Fax: (660) 543-8465
Web page: http://www.ucmo.edu/econ
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- O. David Gulley & Jahangir Sultan, 1998. "Consumer confidence announcements: do they matter?," Applied Financial Economics, Taylor & Francis Journals, vol. 8(2), pages 155-166.
- Jansen, W. Jos & Nahuis, Niek J., 2003.
"The stock market and consumer confidence: European evidence,"
Elsevier, vol. 79(1), pages 89-98, April.
- W. Jos Jansen & Niek J. Nahuis, 2002. "The Stock Market and Consumer Confidence: European Evidence," MEB Series (discontinued) 2002-11, Netherlands Central Bank, Monetary and Economic Policy Department.
When requesting a correction, please mention this item's handle: RePEc:umn:wpaper:0808. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Paul Chambers)
If references are entirely missing, you can add them using this form.