Does Earnings Guidance Affect Market Returns? The Nature and Information Content of Aggregate Earnings Guidance
Author | : Carol Anilowski Cain |
Publisher | : |
Total Pages | : 49 |
Release | : 2007 |
ISBN-10 | : OCLC:1290322173 |
ISBN-13 | : |
Rating | : 4/5 ( Downloads) |
Download or read book Does Earnings Guidance Affect Market Returns? The Nature and Information Content of Aggregate Earnings Guidance written by Carol Anilowski Cain and published by . This book was released on 2007 with total page 49 pages. Available in PDF, EPUB and Kindle. Book excerpt: We investigate whether earnings guidance affects aggregate stock returns through its effects on expectations about overall earnings performance and/or aggregate expected returns. We find that aggregate guidance, especially relative levels of quarterly downward guidance, is associated with analyst- and time-series-based measures of aggregate earnings news. We find more modest evidence that guidance, again, largely downward guidance, is associated with market returns - market returns appear to respond to guidance toward the end of each calendar quarter, when most earnings preannouncements are released, and there is some evidence that firm-level guidance affects market returns in short windows around its release.