Skip to main content
Article
The Stock Market’s Reaction to Accounting Information: The Cases of Chile and Peru
Journal of Accounting in Emerging Economies
  • Mauricio A. Melgarejo, Butler University
  • Eduardo Montiel
  • Luis Sanz
Document Type
Article
Publication Date
1-1-2016
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.
Citation Information
Mauricio A. Melgarejo, Eduardo Montiel and Luis Sanz. "The Stock Market’s Reaction to Accounting Information: The Cases of Chile and Peru" Journal of Accounting in Emerging Economies (2016)
Available at: http://works.bepress.com/mauricio-melgarejo/9/