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New Evidence on the Information Content of Earnings Announcements for the Swiss Market

Author

Listed:
  • Armin Bänziger

    (School of Management and Law, Zurich University of Applied Sciences, 8401 Winterthur, Switzerland)

  • Alexander Pitthan

    (School of Management and Law, Zurich University of Applied Sciences, 8401 Winterthur, Switzerland)

  • Thomas Gramespacher

    (School of Management and Law, Zurich University of Applied Sciences, 8401 Winterthur, Switzerland)

  • Ursina Hüppin

    (School of Management and Law, Zurich University of Applied Sciences, 8401 Winterthur, Switzerland)

Abstract

A semi-strong efficient market incorporates relevant new information immediately. Using an event study, we investigate whether and to what extent regular earnings announcements of Swiss companies listed on the Swiss Market Index show the expected effects in share prices. For this purpose, we test for abnormal returns caused by earnings announcements in the period from 2012 until 2022. In contrast to previous studies of the Swiss market, we find that deviations from analysts’ expected earnings lead to pronounced immediate movements in stock prices, as predicted by the semi-strong efficient market hypothesis. Pre- and post-announcement abnormal returns are modest and generally not statistically significant.

Suggested Citation

  • Armin Bänziger & Alexander Pitthan & Thomas Gramespacher & Ursina Hüppin, 2023. "New Evidence on the Information Content of Earnings Announcements for the Swiss Market," JRFM, MDPI, vol. 16(3), pages 1-10, March.
    • Handle: RePEc:gam:jjrfmx:v:16:y:2023:i:3:p:156-:d:1084413
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    References listed on IDEAS

    as
    1. Rory F. Knight, 1991. "The Information Content of Swiss Corporate Earnings and Dividend Announcements," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 127(III), pages 537-561, September.
    2. Kothari, S. P., 2001. "Capital markets research in accounting," Journal of Accounting and Economics, Elsevier, vol. 31(1-3), pages 105-231, September.
    3. A. Craig MacKinlay, 1997. "Event Studies in Economics and Finance," Journal of Economic Literature, American Economic Association, vol. 35(1), pages 13-39, March.
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    Cited by:

    1. Sun-Keun Yoo & Se-Hak Chun, 2023. "The Effects of Corporate Financial Disclosure on Stock Prices: A Case Study of Korea’s Compulsory Preliminary Earnings Announcements," JRFM, MDPI, vol. 16(12), pages 1-9, December.

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