Does shareholder composition matter? Evidence from the market reaction to corporate earnings announcements

• 成果类型: Article
• 署名作者: Hotchkiss, ES; Strickland, D
• 署名单位: University of North Carolina; University of North Carolina Chapel Hill; Boston College
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/1540-6261.00574
• 发表日期: 2003
• 页码: 1469-1498
• 关键词: OF-THE-YEAR; institutional investors; stock-prices; BEHAVIOR; equilibrium; individuals; VOLATILE; Activism; IMPACT; FIRMS

摘要

We examine whether institutional ownership composition is related to parameters of the market reaction to negative earnings announcements. When firms report earnings below analysts' expectations, the stock price response is more negative for firms with higher levels of ownership by momentum or aggressive growth investors. There is no evidence, however, that these institutions cause an overreaction to earnings news. Ownership structure is also related to trading volume and to stock price volatility on days around earnings announcements. Our findings are consistent with the idea that the composition of institutional shareholders effects stock price behavior around the release of corporate information.