Short-Sales Constraints, Investor Disagreement, and the Asymmetric Market Reaction to Earnings News
Date (YYYY-DD-MM):
2010-23-07
Date & Venue:
23rd July 2010 at 2.30 pm, Venue : P-22
Speaker:
Professor Bharat Sarath
We predict that when short-selling a stock is difficult and investors disagree about its fundamental value, the price reaction to earnings news will be asymmetric. Specifically, the price response to bad news will be greater than that to good news.
Speaker Profile:
Professor Bharat Sarath, Rutgers University