Title

The Stock Market’s Reaction to Accounting Information: The Cases of Chile and Peru

Document Type

Article

Publication Date

2016

Publication Title

Journal of Accounting in Emerging Economies

DOI

http://dx.doi.org/10.1108/JAEE-11-2013-0054

Abstract

Purpose

To analyze the stock price and volume reactions around firms’ earnings announcement dates in two Latin American stock markets: Chile and Peru

Design/methodology/approach

This study uses multivariate regression analysis to determine the impact of accounting information on stock prices and volume traded around the firms’ earnings announcement dates.

Findings

We find that quarterly earnings surprises explain stock abnormal returns and abnormal trading volumes around the earnings announcement dates in the Santiago (Chile) and Lima (Peru) stock exchanges. We also find that these two effects are driven by small firms.

Originality/value

This is one of the first articles to study the price and volume reactions to accounting information in Latin American stock markets.

Rights

Version of record can be found through Emerald.