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Issue 5(1), October 2010 -- Paper Abstracts
Girard  (p. 9-22)
Cooper (p. 23-32)
Kunz-Osborne (p. 33-41)
Coulmas-Law (p.42-46)
Stasio (p. 47-56)
Albert-Valette-Florence (p.57-63)
Zhang-Rauch (p. 64-70)
Alam-Yasin (p. 71-78)
Mattare-Monahan-Shah (p. 79-94)
Nonis-Hudson-Hunt (p. 95-106) 



JOURNAL OF ACCOUNTING AND FINANCE 


Effects of Growth Options on The Post-Earnings Announcement Drift

Author(s): Wenguang Lin, Andrew Li, Xiaoli Yuan

Citation: Wenguang Lin, Andrew Li, Xiaoli Yuan, (2018) "Effects of Growth Options on The Post-Earnings Announcement Drift",  Journal of Accounting and Finance, Vol. 18, ss. 4, pp. 101-113

Article Type: Research paper

Publisher: North American Business Press

Abstract:

This paper shows that growth options, measured by the market-asset to book-asset ratio (MABA), have significant effects on the post-earnings announcement drift. First, the abnormal returns during the postearnings announcement period are significantly and negatively correlated to the growth options. This indicates that the traditional benchmark of abnormal returns might not have been able to capture the real underlying risks. Further, the negative relation between growth options and the drift is especially significant for firms with positive earnings surprises. Collectively, our findings suggest that there are asymmetry effects of growth options on the post-earnings announcement drift.