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IrinaK [193]
3 years ago
6

Clever tests to discriminate between alternative explanations. LaPorta, Lakonishok, Shleifer, and Vishny ("Good News for Value S

tocks," Journal of Finance, June 1997) study the returns on stocks on the few days surrounding their quarterly earnings announcements (relative to various expected return benchmarks). They find that on average, high-B/M stocks earn 0.9% around an earnings announcement. In contrast, low-B/M stocks earn an average of -0.1% around an earnings announcement. The difference is statistically significant.
Discuss whether the return pattern found by LaPorta et al. (1997) around earnings announcements is more consistent with the irrational expectations (behavioral) view, or the risk factor (efficient markets) view of the book-to-market effect, and explain your logic.
Business
1 answer:
yulyashka [42]3 years ago
8 0

Answer:

The answer to the above question is:

"The return patterns around earnings announcement is an example of behaviorial pattern exhibiting as more investors flock to buy the stock which has shown better earnings thus driving up the price. In an efficient market, this information would already be built into the price and thus there would not be any appreciable change in price post earning announcement".

Explanation:

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SIZIF [17.4K]

Explanation:

it makes it cheaper for banks to get money from the federal reserve

in return they can offer loans with less interest to customers such as those who buy homes

5 0
3 years ago
The general attitude of the top management using a(n) _____ strategy is that CSR is an added cost or nuisance.
vazorg [7]

Answer:

b) Reactive

Explanation:

A reactive approach is when managers respond to situations and problems as they occur rather than plan for them before hand as this is an added cost.

Proactive managers seek out opportunities to always input CSR in their strategies. Accommodative strategies and defensive strategies build in some leeway. None of these options completely discount csr as a cost as does the reactive style.

Hope that helps.

7 0
3 years ago
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Komok [63]

Answer:

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Hence, the third option is correct

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Why do people try to avoid getting a refund on their tax returns?
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