Imprecision of Central Bank Announcements and Credibility

We consider a model where the central bank faces a credibility problem in its announcements, but also cares about its credibility and, therefore, wants to make truthful announcements. We show that, although the central bank would be able to perfectly transmit its information to the private sector through precise announcements, the central bank may nonetheless prefer to make imprecise announcements. This choice of the central bank would be suboptimal from the point of view of society. However, if the central bank gives enough weight to making truthful announcements, this suboptimality disappears, because the central bank would then prefer precise announcements to imprecise announcements.central bank transparency; central bank announcements; imprecise announcements; credibility

Asynchronous Announcements

We propose a multi-agent epistemic logic of asynchronous announcements, where truthful announcements are publicly sent but individually received by agents, and in the order in which they were sent. Additional to epistemic modalities the logic contains dynamic modalities for making announcements and for receiving them. What an agent believes is a function of her initial uncertainty and of the announcements she has received. Beliefs need not be truthful, because announcements already made may not yet have been received. As announcements are true when sent, certain message sequences can be ruled out, just like inconsistent cuts in distributed computing. We provide a complete axiomatization for this \emph{asynchronous announcement logic} (AA). It is a reduction system that also demonstrates that any formula in $AA$ is equivalent to one without dynamic modalities, just as for public announcement logic. The model checking complexity is in PSPACE. A detailed example modelling message exchanging processes in distributed computing in $AA$ closes our investigation

Law School Announcements 1982-1983

Officers and Faculty The Law School - History Programs of Instruction Curriculum Student Activities and Organizations Funds and Endowmentshttps://chicagounbound.uchicago.edu/lawschoolannouncements/1106/thumbnail.jp

Law School Announcements 1916-1917

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STRATEGI PERDAGANGAN SAHAM DENGAN ANALISIS TEKNIS : PENGUJIAN PROFITABILITAS SINYAL SEBELUM TANGGAL PUBLIKASI LABA

The main purpose of this research is try to examine the profitability of technical analysis that arise before earnings announcements date. Using data from publication date in 2005,2006,2007 and 2008, this research show the evidence that those indicators can anticipate information that will be published in the announcements. All of the indicators, RSI(10)- SMA(10), SMA(10), and dual SMA(10,20), produce profit using data before announcements. It means that investors/stock traders can use this indicators as a trading strategy. Another results, this research finds a tendency that there is information leakage on earnings announcements

What happens around earning announcements? An investigation of information asymmetry and trading activity in the Saudi market

This paper examines stock returns and trading activities around earnings announcements for listed companies in the Saudi stock market (SSM). Specifically, we examine the levels of stock liquidity, trading activity, volatility, bid-ask spread, asymmetric information and investor trading behaviour around earnings announcements for all firms in the market for the period 2002-2009. Abnormal price and volume reactions around earnings announcements suggest that these announcements produce highly informative contents. The magnitude of the cumulative abnormal returns around earnings announcement is induced by trading activity in the two weeks before the release date. We also show evidence of an increased adverse selection cost around earnings announcement, which is then gradually reduced in the post-announcement period, indicating that earnings announcements reduce uncertainty in the market. We also examine trading behaviour among small and large investors in the market through constructing order imbalance measures. In general, large investors are more sophisticated and show higher informed trading before earnings announcements whereas smaller investors show stronger reaction to news. Moreover, small investors show a buying pattern which is consistent with times-series based earnings surprise. They are net-buyers for good news and net-sellers for bad news portfolios

Law School Announcements 2023-2024

Officers and Faculty The Law School - History Programs of Instruction Curriculum Student Activities and Organizations Funds and Endowmentshttps://chicagounbound.uchicago.edu/lawschoolannouncements/1137/thumbnail.jp

Intraday CAC40, DAX and WIG20 returns when the American macro news is announced

We examine the reaction of the returns of CAC40, DAX and WIG20 to the periodically scheduled prominent American macroeconomic data announcements. We investigate returns and volatility dynamics at the time of news arrival as well as interdependence between series within the time of the announcements. The results suggest that the macro announcements from the U.S. market not only explain seasonality observed in these equity markets but also have a significant impact on both returns and volatility. However, the reactions to announcements are different with respect to the type of announcement. Application of dynamic conditional correlation models allows us to decompose the total impact of announcements into the reaction on the domestic market and conditional correlation between the markets.macroeconomic announcements, high-frequency data, volatility

Law School Announcements 1951-1952

Officers and Faculty The Law School - History Programs of Instruction Curriculum Student Activities and Organizations Funds and Endowmentshttps://chicagounbound.uchicago.edu/lawschoolannouncements/1077/thumbnail.jp

The impact of economic news on bond prices: evidence from the MTS platform

Although there is an extensive literature on the impact of macroeconomic announcements on asset prices, the bond market has received less attention than the foreign exchange and equity markets, even less if we consider the European market. This paper uses high-frequency intra-day data over a three-year period to investigate the impact of regularly scheduled macroeconomic news and monetary policy announcements on the returns of the Italian government bond market, the largest one in the Euro-zone. With respect to the previous papers, we use a much broader set of announcements, sixty-eight, and a relatively novel dataset (MTS). We find that twenty-five news have a significant impact on bond returns and that almost all announcements are incorporated into prices within twenty minutes from the release