Professors Jiang, McInish to Publish Study in Leading Finance Journal
For Release: September 1, 2011
Finance professors Dr. Christine Jiang and Dr. Thomas McInish, along with Dr. Tanakorn
Likitapiwat, a recent graduate of the Finance doctoral program and a faculty member
at Chulalongkorn University in Thailand, have authored a study, “Information Content
of Earnings Announcements: Evidence from After Hours Trading,” that is slated to appear
in the A+ rated Journal of Financial and Quantitative Analysis (JFQA).
In the United States, investors can trade on exchanges during regular hours (9:30
a.m. to 4 p.m.) or in sessions outside of these hours. Almost all earnings announcements
by U.S. firms now occur during the before- and after-hours sessions. In their study,
Jiang, McInish and Likitapiwat show that a significant portion of the price change
resulting from the announcements occurs immediately after the earnings releases rather
than during regular trading. The study provides evidence that firms prefer to make
earnings announcements during the before and after sessions because trading in those
sessions is dominated by knowledgeable traders whose trades are better able to convey
information to the general public.