Equity Market Reaction to the Earnings Disclosure and the Strategic Disclosures

In this book, we will try to examine whether the companies’ earnings disclosures and the strategic disclosures have different capital market effects by looking at stock return volatility during the time of announcement. Addressing this question may contribute our understanding of the flow of information and the extent of information asymmetry in capital markets. In addition, it is likely to be useful in helping us understanding the effect of corporate disclosures on the investors’ perception.