Post-earnings announcement drift in Greece

George Giannopoulos; William Forbes

doi:10.1142/S0219091515500198

Post-earnings announcement drift in Greece

George Giannopoulos
, William Forbes

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Abstract

This paper presents evidence regarding the post-earnings announcement drift (PEAD) anomaly for the Greek market in the years 2000-2006 (covering earnings announcements in the years 2001-2007). The impact of the introduction of International Financial Reporting Standards on the size and prevalence of the PEAD anomaly is examined. Unlike recent evidence for the US market we find PEAD to be alive and well, and of growing importance in our Greek sample. It may be the adoption of international financial reporting standards (IFRS) has served to reduce earnings predictability in Greece and thus enhance PEAD in the Athens stock exchange (ASE) market. This contrasts strongly with US evidence that the post earnings- announcement drift anomaly is now waning as more efficient markets and smarter, fundamentals-based, traders arbitrage its impact on stock prices.

Original language	English
Article number	1550019
Journal	Review of Pacific Basin Financial Markets and Policies
Volume	18
Issue number	3
DOIs	https://doi.org/10.1142/S0219091515500198
Publication status	Published - Sept 2015

Keywords

Accounting and finance

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10.1142/S0219091515500198

Forbes William and Giannopoulos George 2015Accepted author manuscript, 819 KBLicence: Unspecified

http://dx.doi.org/10.1142/S0219091515500198

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title = "Post-earnings announcement drift in Greece",

abstract = "This paper presents evidence regarding the post-earnings announcement drift (PEAD) anomaly for the Greek market in the years 2000-2006 (covering earnings announcements in the years 2001-2007). The impact of the introduction of International Financial Reporting Standards on the size and prevalence of the PEAD anomaly is examined. Unlike recent evidence for the US market we find PEAD to be alive and well, and of growing importance in our Greek sample. It may be the adoption of international financial reporting standards (IFRS) has served to reduce earnings predictability in Greece and thus enhance PEAD in the Athens stock exchange (ASE) market. This contrasts strongly with US evidence that the post earnings- announcement drift anomaly is now waning as more efficient markets and smarter, fundamentals-based, traders arbitrage its impact on stock prices.",

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Post-earnings announcement drift in Greece

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