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Journal of Accounting and Economics Vol. 17 No. 3 1994

Trading volume reactions to annual accounting earnings announcements

Rowland K. Atiase1; Linda Smith Bamber2

1 The University of Texas at Austin · 2 University of Georgia

Abstract

This study provides empirical evidence regarding the effect of annual accounting earnings announcements on investors' trading behavior. We find that the magnitude of trading volume reaction is an increasing function of both the magnitude of the associated price reaction and the level of predisclosure information asymmetry. These results are consistent with Kim and Verrecchia's (1991a) theoretical trading volume proposition.

DOI
10.1016/0165-4101(94)90031-0
Volume
17
Issue
3
Pages
309-329
Language
en
Sources
bibtex:phds-export.bib openalex crossref

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