Printer Friendly
Dictionary, Encyclopedia and Thesaurus - The Free Dictionary
3,893,871,394 visitors served.
forum Join the Word of the Day Mailing List For webmasters
?
Dictionary/
thesaurus
Medical
dictionary
Legal
dictionary
Financial
dictionary
Acronyms
 
Idioms
Encyclopedia
Wikipedia
encyclopedia
?

Announcement Effect
(redirected from Announcement Effects)

     0.01 sec.
Announcement Effect
A change in security prices or volatility as a result of some announcement. For example, if the Federal Reserve raises interest rates, stock prices are liable to fall. Likewise, if a company announces an acquisition, its stock may rise. The announcement effect may cause drastic price changes; as a result, companies and governments often selectively leak or hint at announcements before they occur to minimize surprises. The announcement effect is also called the signal effect. See also: Price out the News.
Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content.
?Page tools
Printer friendly
Cite / link 		Feedback
Add definition
Mentioned in?  References in periodicals archive?   Financial browser?   Full browser?
No references found
 
Since investors cannot (short-)sell specific pieces of a firm--or short-sell the CEO, for that matter--the stock market is unlikely to allow identifying a "market reaction" to managerial biases, with the exception of the rare occasion when we can study announcement effects (as in the case of mergers by overconfident CEOs discussed above).
A "new" paradigm in corporate finance: the role of managers and ... by Malmendier, Ulrike / NBER Reporter
Moreover, he makes no attempt to relate announcement effects to firm characteristics.
Do markets like frozen defined benefit pensions? An event study by Milevsky, Moshe A.; Song, Keke / Journal of Risk and Insurance
As we argue in Section I, this has the testable implication that in addition to being undervalued, firms issuing putable convertibles will have more favorable announcement effects and better postissue operating performance as compared to a matched sample of ordinary convertible issuers.
What drives the issuance of putable convertibles: risk-shifting, ... by Chemmanur, Thomas J.; Simonyan, Karen / Financial Management
 
 
 
Financial Dictionary
?

Terms of Use | Privacy policy | Feedback | Advertise with Us | Copyright © 2012 Farlex, Inc.
Disclaimer
All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.