Does this mean that management are being encouraged to manipulate market expectations and sentiment in order to impact the share price possitively?
Onésimo Alvarez-Moro
See article:
US companies wanting to manage market expectations and boost their share prices should release good earnings news as soon as possible but keep bad news under wraps until the last minute, says a study to be released on Monday.
The findings offer an unprecedented insight into the release of price-sensitive information, showing that right timing can more than double the size of a share price rise or significantly curtail a fall.
The issue is all the more important at a time when institutional investors and hedge funds are focused on short-term price movements.
The study, by Reuters Estimates, aims to quantify the difference in the movements of share prices of companies that “pre-announced” their earnings and companies that choose to “surprise” the market on the scheduled release date.
See full Article (paid subscription required).
Posts
