The High-Volume Return Premium and Post-Earnings Announcement Drift

This paper investigates the relationship among trading volume around earnings announcements, earnings forecast errors, and subsequent returns. Prior research finds a positive relation between earnings announcement period trading volume and subsequent returns (the high-volume return premium) and between earnings forecast errors and subsequent returns (post-earnings announcement drift). We find that for a sample of firms followed by analysts these effects are complementary, i.e., each retains incremental ability to predict post-earnings announcement returns. Prior research provides two competing explanations for the high-volume return premium: changes in firm visibility versus differences in risk. We provide evidence that seems to rule out risk-based explanations while supporting the visibility hypothesis

Separated at Birth: An Inquiry on the Conceptual Independence of the Entrepreneurship and the Leadership Constructs

Entrepreneurship and leadership may flow from the same genealogical source and the appearance of separation of the two constructs may be due to differences in the contexts through which the root phenomenon flows. Entrepreneurship and leadership are figuratively different manifestations of the need to create. To better understand the origin of entrepreneurship and leadership, research must first focus on the combinations or hierarchy of traits that are necessary, but perhaps not sufficient, to stimulate the two constructs. Factors that trigger a drive to create or take initiative within the individual in the context of a particular circumstance should be identified, and the situational factors that move the individual toward more traditional leader or classic entrepreneurial-type behaviors need to be understood

Naive Investors, Earnings Announcements, and Stock Price Movements

This paper addresses the issue of whether investors with “naïve” earnings expectations (i.e., earnings forecasts that are systematically less accurate than other publicly available predictions) have sufficient market power to affect common stock prices. The results clearly indicate that when security analysts predict quarterly earnings increases (decreases), from the same fiscal quarter of the prior year, that the abnormal return around the upcoming earnings announcement tends to be positive. When the data are formed into 50 portfolios, about 66% of the abnormal return variation around earnings announcements is explained by the predicted earnings change. This is surprising since the forecasts used are dated from one to thirteen weeks before the earnings announcement

Surface geology of Bala, Riley County, Kansas

Maps in pockets bound with piece

Naive Investors, Earnings Announcements, and Stock Price Movements

This paper addresses the issue of whether investors with “naïve” earnings expectations (i.e., earnings forecasts that are systematically less accurate than other publicly available predictions) have sufficient market power to affect common stock prices. The results clearly indicate that when security analysts predict quarterly earnings increases (decreases), from the same fiscal quarter of the prior year, that the abnormal return around the upcoming earnings announcement tends to be positive. When the data are formed into 50 portfolios, about 66% of the abnormal return variation around earnings announcements is explained by the predicted earnings change. This is surprising since the forecasts used are dated from one to thirteen weeks before the earnings announcement

Who, if Anyone, Reacts to Accrual Information?

We confirm and extend prior research that suggests accrual levels predict future returns, even after controlling for earnings surprise. We then document abnormal buying behavior around 10-K/Q filing dates that correlates with accrual level. Specifically, we extend Collins and Hribar (2000) by showing that the accrual anomaly persists for a sample of firms followed by analysts after controlling for analyst earnings forecast errors and using exact 10-K/Q filing dates. We then show that large traders, those who initiate trades of at least 5,000 shares, tend to trade in the correct direction in response to accrual information released in SEC filings after preliminary earnings. This tendency is limited, however, to cases where earnings conveyed favorable news initially. Investors who use accrual information apparently ignore stocks whose earnings convey unfavorable news or believe that accrual level is not informative for these firms. We also provide some evidence that the smallest traders react to accrual information, but in the wrong direction

Georgia Aquarium Design Space Analysis and Optimization

AbstractThe Ocean Voyager exhibit residing at the Georgia Aquarium Inc. (GAI) is one of the largest reef gallon aquariums in the world, with a capacity greater than 6.2M gallons. Reef aquariums are closed systems and must compensate by ‘turning over’ their complete volume of water many times a day through biological, chemical, and mechanical filtration. Due to the Georgia Aquarium being a non-profit organization, GAI sought to investigate ways to maximize efficiency and lower operating costs. This paper will focus on using low-cost software solutions to perform trade space analyses and optimization directed towards the Ocean Voyager exhibit and related GA Aquarium life support and energy systems.The software solution herein demonstrates a top-down System of Systems (SoS) to subsystem modeling approach that provides decision makers with interdisciplinary dashboard-level tools to visualize system design. The goal of the analysis is to provide executive level decision-making support for designing or enhancing existing complex systems and SoS. The analysis was performed as a capstone project by Georgia Tech graduate students progressing from cradle to finish in just 9 weeks to show the benefits of systems engineering to Georgia Aquarium staff. Integrating software SE tools into a single, aggregate model enables project engineers and decision makers to direct design directions with confidence

Option Listing, Information Production and the Stock Price Response to Earnings Announcements

This paper addresses the issue of whether investors produce more information on firms that have listed stock options than on similar firms that do not have options and, if so, whether this additional information translates into a smaller stock-price reaction to releases of public information such as earnings announcements. After correcting for factors previously found to explain changes in two indicators of investor interest, analyst attention and institutional ownership, we find that firms with listed options exhibit significantly higher average levels of each of these variables than firms without listed options. Prior results regarding this issue are limited and contradictory. We also find, contrary to previous research, that this additional information production does not lead to a smaller price reaction to earnings announcements. The remainder of the introduction discusses prior research as well as the motivation for this study

Earnings expectations and investor clienteles

Abstract: Prior research suggests that the earnings expectations of some investors are systematically biased toward seasonal random walk (SRW) predictions. We provide clear and direct evidence that the net buying activity of small (large) traders around earnings announcements is significantly positively associated with SRW (analyst) forecast errors. Further, the interpretations of earnings news by the smallest and largest investors appear to be completely unrelated. Finally, small trades at the time of earnings announcements run counter to stock-price movements suggesting that small traders may impede stock prices from reflecting earnings-related information and may, therefore, play a role in post-earnings-announcement drift. Earnings Expectations and Investor Clienteles Abstract: Prior research suggests that the earnings expectations of some investors are systematically biased toward seasonal random walk (SRW) predictions. We provide clear and direct evidence that the net buying activity of small (large) traders around earnings announcements is significantly positively associated with SRW (analyst) forecast errors. Further, the interpretations of earnings news by the smallest and largest investors appear to be completely unrelated. Finally, small trades at the time of earnings announcements run counter to stock-price movements suggesting that small traders may impede stock prices from reflecting earnings-related information and may, therefore, play a role in post-earnings-announcement drift