The Stock Market’s Reaction to Accounting Information: The Case of the Latin American Integrated Market Abstract

Mauricio A. Melgarejo; Eduardo Montiel; Luis Sanz

The Stock Market’s Reaction to Accounting Information: The Case of the Latin American Integrated Market Abstract

Mauricio A. Melgarejo, Eduardo Montiel, Luis Sanz

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Abstract

The purpose of this paper is to explore the stock market’s reaction to quarterly financial statements. We focus our study in two countries that are participating in the Latin American Integrated Market (MILA): Peru and Chile. We find that the cumulative abnormal returns and the absolute value of the cumulative abnormal trading are explained principally by the quarterly earnings surprises around the financial statements release date. We find that these effects are more pronounced in small firms, confirming that due to the lower level of pre disclosure information accounting numbers are the main source of information. Key words: Accounting Information, Stock Markets, Small Firms.

Original language	American English
State	Published - Jan 1 2013
Event	2013 Business Association of Latin American Studies Proceedings - Duration: Jan 1 2013 → …

Conference

Conference	2013 Business Association of Latin American Studies Proceedings
Period	1/1/13 → …

Keywords

Accounting Information
Small Firms
Stock Markets

Disciplines

Accounting
Business
Business Intelligence
Finance and Financial Management
International Business

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The Stock Market s Reaction to Accounting Information The Case oFinal published version, 444 KBLicense: Unspecified

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title = "The Stock Market{\textquoteright}s Reaction to Accounting Information: The Case of the Latin American Integrated Market Abstract",

abstract = " The purpose of this paper is to explore the stock market{\textquoteright}s reaction to quarterly financial statements. We focus our study in two countries that are participating in the Latin American Integrated Market (MILA): Peru and Chile. We find that the cumulative abnormal returns and the absolute value of the cumulative abnormal trading are explained principally by the quarterly earnings surprises around the financial statements release date. We find that these effects are more pronounced in small firms, confirming that due to the lower level of pre disclosure information accounting numbers are the main source of information. Key words: Accounting Information, Stock Markets, Small Firms.",

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T1 - The Stock Market’s Reaction to Accounting Information: The Case of the Latin American Integrated Market Abstract

AU - Melgarejo, Mauricio A.

AU - Montiel, Eduardo

AU - Sanz, Luis

PY - 2013/1/1

Y1 - 2013/1/1

N2 - The purpose of this paper is to explore the stock market’s reaction to quarterly financial statements. We focus our study in two countries that are participating in the Latin American Integrated Market (MILA): Peru and Chile. We find that the cumulative abnormal returns and the absolute value of the cumulative abnormal trading are explained principally by the quarterly earnings surprises around the financial statements release date. We find that these effects are more pronounced in small firms, confirming that due to the lower level of pre disclosure information accounting numbers are the main source of information. Key words: Accounting Information, Stock Markets, Small Firms.

AB - The purpose of this paper is to explore the stock market’s reaction to quarterly financial statements. We focus our study in two countries that are participating in the Latin American Integrated Market (MILA): Peru and Chile. We find that the cumulative abnormal returns and the absolute value of the cumulative abnormal trading are explained principally by the quarterly earnings surprises around the financial statements release date. We find that these effects are more pronounced in small firms, confirming that due to the lower level of pre disclosure information accounting numbers are the main source of information. Key words: Accounting Information, Stock Markets, Small Firms.

KW - Accounting Information

KW - Small Firms

KW - Stock Markets

UR - https://digitalcommons.butler.edu/cob_papers/276

M3 - Presentation

T2 - 2013 Business Association of Latin American Studies Proceedings

Y2 - 1 January 2013

ER -

The Stock Market’s Reaction to Accounting Information: The Case of the Latin American Integrated Market Abstract

Abstract

Conference

Keywords

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