IDEAS home Printed from https://ideas.repec.org/a/icf/icfjar/v10y2011i1p7-19.html
   My bibliography  Save this article

Information Content of Accounting Data and Post-Earning Announcement Drift: An Insight into Event Study of Turnaround Companies in India

Author

Listed:
  • Santanu K Ganguli

Abstract

The study documents high information content and Post-Earning Announcement Drift (PEAD) phenomenon of the turnaround companies in India. Turnaround companies are defined as those which after reporting accounting loss consecutively for two or more quarters announce profit for the first time. By analyzing the data of 49 such turnaround companies, between 2004 and 2009, the study documents about 9% Cumulative Average Abnormal Return (CAAR) during the week following earning announcement. Profit reported by such companies acts as ‘earning surprise’. Short-run PEAD is observed contrary to efficient capital market theory which postulates instantaneous adjustment of price to new information. The study also attempts to provide some insight into insiders’ trading and earning management in the light of empirical findings.

Suggested Citation

  • Santanu K Ganguli, 2011. "Information Content of Accounting Data and Post-Earning Announcement Drift: An Insight into Event Study of Turnaround Companies in India," The IUP Journal of Accounting Research and Audit Practices, IUP Publications, vol. 0(1), pages 7-19, January.
    • Handle: RePEc:icf:icfjar:v:10:y:2011:i:1:p:7-19
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:icf:icfjar:v:10:y:2011:i:1:p:7-19. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: G R K Murty (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.