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References (8)
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- Publisher
- Springer Journals
- Copyright
- Copyright © 1998 by 1998 Kluwer Academic Publishers, Boston. Manufactured in The Netherlands.
- Subject
- Finance; Corporate Finance; Accounting/Auditing; Econometrics; Operation Research/Decision Theory
- ISSN
- 0924-865X
- eISSN
- 1573-7179
- DOI
- 10.1023/A:1008268201014
- Publisher site
- See Article on Publisher Site
Abstract
This study examines bid-ask spreads to determine how the anticipation and release of earnings announcements affect information asymmetry in the stock market. I use regression analysis and find that bid-ask spreads are negatively related to public information availability and positively related to earnings variability and the market reaction to prior unexpected earnings. The results suggest that firms for which earnings is expected to yield a relatively larger stock market reaction have greater information asymmetry than firms for which earnings are expected to yield a smaller market reaction.
Journal
Review of Quantitative Finance and Accounting – Springer Journals
Published: Oct 6, 2004