2013 Business Association of Latin American Studies Proceedings
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The purpose of this paper is to explore the stock market’s reaction to quarterly financial statements. We focus our study in two countries that are participating in the Latin American Integrated Market (MILA): Peru and Chile. We find that the cumulative abnormal returns and the absolute value of the cumulative abnormal trading are explained principally by the quarterly earnings surprises around the financial statements release date. We find that these effects are more pronounced in small firms, confirming that due to the lower level of pre disclosure information accounting numbers are the main source of information. Key words: Accounting Information, Stock Markets, Small Firms.
This is an electronic copy of a conference paper. The author(s) retains all rights.
Melgarejo, Mauricio A.; Montiel, Eduardo; and Sanz, Luis, "The Stock Market’s Reaction to Accounting Information: The Case of the Latin American Integrated Market Abstract" (2013). Scholarship and Professional Work - Business. 276.