Ucar, 2014, "Religious Holidays, Investor Distraction, and Earnings Announcement Effects
." Journal of Banking and Finance, 47, 102-117.
The short-run announcement effects
on stock prices were more pronounced when investors were downloading the current and prior year's 10-K at the same time.
In this section, to distinguish between the value-enhancing view and the rubber-stamp view on the role of government directors, we perform several director- and firm-level analyses, including the likelihood of directors' board-meeting attendance, merger announcement effects
, and the likelihood of mergers being challenged by antitrust authorities.
Using a sample of private placements made on the Korean Securities Dealers Automated Quotations (KOSDAQ) from January 2000 to December 2010 and limiting it to only include first Secondary Equity Offerings (SEOs), this study examines the relationship between the announcement effects
of equity private placements and lock-up and/or discount signals sent by distressed firms as well as healthy ones.
Keywords : Corporate governance, Event Study, Announcement effects
, Stock price, Agency theory
One source of evidence is announcement effects
: if the Bank of Japan's newfound resolve to raise inflation drove the 2013 movements of interest rates, exchange rates, and the stock market, we should see large immediate reactions when the Bank of Japan announced its new policies.
This result suggests that failure to control for expectations may lead to understating the efficacy of LSAPs, since announcement effects
only capture a portion of the decline in the 10-year Treasury rate.
This announcement effects
the end of the Company's trading halt.
Our work also relates to studies of announcement effects
in the indexed markets, especially that of Beechey and Wright (2009), which also analyzes intraday data but is different in its focus on liquidity and the announcement adjustment process as opposed to price-level effects.
This includes formal statistical tests on the announcement effects
of the various measures employed.
Prior to the formal study of announcement effects
on volatility, researchers found that volatility is autocorrelated and displays intraday and intraweek patterns.
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).