The share is down 8% after the profit warning, is it time to buy?

A1 Journal article (refereed)


Internal Authors/Editors


Publication Details

List of Authors: Spohr Jonas Olli
Publisher: Routledge
Publication year: 2014
Journal: Applied Economics Letters
Volume number: 21
Issue number: 8
Start page: 556
End page: 559
eISSN: 1466-4291


Abstract

Variables explaining the market response to a profit warning are of interest to
both market participants and the managers of the firm. Several variables have
been used in previous research to explain the market response to profit warnings
10 with varying outcomes. This study uses a framework of surprise and risk to
explain the market response and tests it on a sample of 474 profit warnings
collected from Nasdaq OMX Nordic. The findings show that surprise and risk
variables can be used to estimate the size of the market response to a profit
warning.


Keywords

accounting disclosure, Accounting research

Last updated on 2019-22-10 at 03:35