Information content of interim earnings components - evidence from Finland

Article Abstract:

The information content of the interim earnings of Finnish companies listed on the Helsinki Stock Exchange is examined. The study investigates the extent to which market participants rely on the information contained in the firms' interim financial statements. The degree of the relationship between stock returns and interim earnings is examined by testing the hypothesis that the association between earnings changes and returns is greater when the changes are permanent than when they are transitory. Evidence supporting the hypothesis is found.

Research, Profits, Financial statements, Corporate profits, Hex Integrated Markets Ltd.

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Discussion of 'Microstructure and Seasonality in the UK Equity Market.' (response to Paul Draper and Krishna Paudyal in this issue, p. 1177)

Article Abstract:

Alternative methodologies in understanding the seasonalities of stock markets are presented and an insightful analysis of the conflicting views about the seasonality in UK's stock market is made. It is emphasized that the persistent seasonality in the UK stock market should not hinder the development of better trading strategies and consequently, improved portfolio performance.

Analysis

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Similar abstracts:

• Abstracts: Discussion of 'The impact of investor sophistication on price responses to earnings news.' (comment on Ashraf Elsharkawy and Neil Garrod in this issue, p. 221)(Special Issue: Selected Papers from the Conference on Empirical Research in Business Finance and Accounting, May 1995)

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