Do investors react differently on friday's earnings announcements?

Nurwati Ashikkin Ahmad Zaluki, Ridhuwan Abdullah, Salwani Abdullah, Zarina Alassan

Research output: Contribution to journalArticle

Abstract

This paper examines whether markets react differently to earnings announcements released on Fridays versus non-Fridays in the Malaysian capital market. We use a standard event study method using a market-adjusted return model to examine such differences based on a sample of 120 earnings announcements. The results show that announcements of profits released by companies on Fridays have a negative effect on stock prices while announcements of losses are associated with positive effects. These results contrast with the results observed when the earnings announcements are released on non-Friday, thus confirming that such differences exist in the Malaysian capital market.

Original languageEnglish
Pages (from-to)75-97
Number of pages23
JournalInternational Journal of Economics and Management
Volume6
Issue number1
Publication statusPublished - Apr 2012
Externally publishedYes

Fingerprint

Investors
Earnings announcements
Capital markets
Announcement
Event study
Stock prices
Profit

Keywords

  • Earnings announcements
  • Event study
  • Friday and non-Friday
  • Malaysia

ASJC Scopus subject areas

  • Economics, Econometrics and Finance(all)
  • Business and International Management
  • Strategy and Management

Cite this

Do investors react differently on friday's earnings announcements? / Zaluki, Nurwati Ashikkin Ahmad; Abdullah, Ridhuwan; Abdullah, Salwani; Alassan, Zarina.

In: International Journal of Economics and Management, Vol. 6, No. 1, 04.2012, p. 75-97.

Research output: Contribution to journalArticle

Zaluki, Nurwati Ashikkin Ahmad ; Abdullah, Ridhuwan ; Abdullah, Salwani ; Alassan, Zarina. / Do investors react differently on friday's earnings announcements?. In: International Journal of Economics and Management. 2012 ; Vol. 6, No. 1. pp. 75-97.
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