F1 Published independent work of art
Use of interim earnings information on the Helsinki Stock Exchange




List of Authors: Vieru M, Schadewitz H
Edition name or number: Acta Wasaensia no 173
Publisher: Vaasa: Yliopistopaino
Publication year: 2007
Title of series: Acta Wasaensia
Number in series: 173
ISBN: 978-952-476-180-2

Abstract


In this paper we study how the market uses the information on current and past interim earnings. Our hypothesis is that investors focus on a comparison of year-to-year changes in interim earnings. We provide further international evidence on how the market acts in the face interim earnings announcements.  The data is based on the Finnish emerging market covering the years 1992-2002. We found, consistent with Ball and Bartov [1], evidence that investors underestimate the magnitude of the serial correlation in interim earnings. The results suggest that investors use, at least in part, a seasonal random walk model when forming earnings expectations.


Last updated on 2019-21-08 at 20:33