Stephen E. Christophe and Jim Hsieh, George Mason University
Wall Street Horizon Abstract
The findings of the study reveal that information percolation during earnings announcements (including data sourced by Wall Street Horizon) leads to increased short selling activity by informed traders. The authors observe that informed short sellers take advantage of the newly disclosed information to profit from downward price movements, indicating their ability to anticipate negative earnings surprises.
Moreover, the research examines the impact of informed short selling on subsequent stock returns. It shows that short selling activity following negative earnings surprises leads to a more pronounced price decline in the days following the announcement. This suggests that informed short sellers contribute to the price discovery process and facilitate the incorporation of new information into stock prices.
Are you an academic interested in Wall Street Horizon data? Please contact us.
Related Content
-
Berkshire Hathaway Joins the Trillion-Dollar Club: A Deeper Dive into the Insurance Industry
-
.png)
Stock Splits Continue Their 2024 Comeback
-
Quartz: Walmart is winning this shaky economy, analyst says
-
Quartz: Apple spent big on AI — and it's paying off with the iPhone 16, analyst says
-
Key Findings 2024: Data for Trading and Risk Annual Survey from Wall Street Horizon
-
.png)
NVIDIA Earnings in Focus, Chips Stocks Chopping Around
-
Retail Brew: Discount and digital spending boost Target’s Q2 sales
-
.png)
Mid-Q3 2024 Investor Conference & Events Highlights Update
-
.png)
That’s a Wrap! The Q2 Earnings Season Concludes with a Final Word from the Retailers
-
Wall Street Horizon LERI (Late Earnings Report Index) Shows Less US Corporate Confidence
 .png)
