Who trades in competing firms around earnings announcements

Please use this identifier to cite or link to this item: https://hdl.handle.net/1959.11/58484

Title:	Who trades in competing firms around earnings announcements
Contributor(s):	Mudalige, Priyantha (author) ; Duong, Huu Nhan (author); Kalev, Petko S (author); Gupta, Kartick (author)
Publication Date:	2020-02
DOI:	10.1016/j.pacfin.2019.101219
Handle Link:	https://hdl.handle.net/1959.11/58484
Abstract:	This study investigates individual and institutional trading activities around earnings announcements. We find evidence of individual and institutional informed trading in competing firms before earnings announcements. We also observe that institutional trading exhibits quicker incorporation of new information, which suggests that institutional investors are more likely to use private information in trading in competing firms. The individual net order flow transmits information cross-stock when a competitor is a small firm, while institutional net order flow conveys information cross-stock irrespective of firm size. Finally, we find that institutional trading in competing firms exhibits cross-stock price impact before earnings announcements.
Publication Type:	Journal Article
Source of Publication:	Pacific-Basin Finance Journal, v.59
Publisher:	Elsevier BV
Place of Publication:	The Netherlands
ISSN:	0927-538X
Fields of Research (FoR) 2020:	3502 Banking, finance and investment
Socio-Economic Objective (SEO) 2020:	tbd
Peer Reviewed:	Yes
HERDC Category Description:	C1 Refereed Article in a Scholarly Journal
Appears in Collections:	Journal Article UNE Business School

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