THE INFORMATION CONTENT OF EARNINGS ANNOUNCEMENTS IN THE EUROPEAN INSURANCE MARKET: AN EVENT STUDY ANALYSIS

Alberto Dreassi (), Massimiliano Kaucic () and Giorgio Valentinuz ()
Additional contact information
Alberto Dreassi: University of Trieste, Italy
Massimiliano Kaucic: University of Trieste, Italy
Giorgio Valentinuz: University of Trieste, Italy

Eurasian Journal of Business and Management, 2017, vol. 5, issue 3, 1-16

Abstract: We contribute to the extensive literature on the relationship between earnings announcements and market reactions by investigating the European insurance sector, which presents a wide difference in transparency between quarterly and semi-annual/annual reports. We design an event-study analysis comprising over 900 events in the period 2009-2016, testing if investors react differently to the two subsets of reports. We find that quarterly reports result in signals on stock prices’ limited to few trading days, whereas semi-annual and annual reports produce bigger and more persistent impacts. Instead, we do not find evidence of differences impacting trading volumes. Our results are supportive of the recent EU decision to remove the obligation to publish quarterly reports to avoid short-termism and suggest that costs are greater than benefits for companies considering to adopt voluntary quarterly reports.

Keywords: Post-Earnings-Announcement Drift; Stock Prices; Volume Trading; Insurance; Event Study (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://eurasianpublications.com/wp-content/uploads/2021/02/EJBM-5.3.1.pdf (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ejn:ejbmjr:v:5:y:2017:i:3:p:1-16

Access Statistics for this article

Eurasian Journal of Business and Management is currently edited by Nidžara Osmanagić-Bedenik

More articles in Eurasian Journal of Business and Management from Eurasian Publications
Bibliographic data for series maintained by Esra Barakli ().