Post-Earnings-Announcement Drift Among Newly Issued Public Companies in U.S. Capital Markets
Abstract
Post-earnings-announcement drift is the tendency for a stock’s cumulative abnormal
returns to drift in the direction of an earnings surprise for several weeks following
an earnings announcement. I show that the drift is significantly more pronounced when
investigating the unexpected earnings of initial public offerings in comparison to
the aggregate U.S. stock market. My results suggest that this disparity is attributable
to firm-specific characteristics inherent in initial public offerings and the extraordinary
growth numerous young firms experience. Further, I postulate that drift patterns following
earnings announcements for IPO firms differ from those observed in prior PEAD research.
Type
Honors thesisDepartment
EconomicsPermalink
https://hdl.handle.net/10161/6964Citation
Saifan, Sami (2013). Post-Earnings-Announcement Drift Among Newly Issued Public Companies in U.S. Capital
Markets. Honors thesis, Duke University. Retrieved from https://hdl.handle.net/10161/6964.Collections
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