Institutional Investors and the Information Content of Earnings Announcements: The Case of Poland

Posted: 30 Jan 2004

See all articles by Amir Tavakkol

Amir Tavakkol

Kansas State University - College of Business Administration

Piotr Korczak

University of Bristol - Department of Finance and Accounting

Date Written: January 2004

Abstract

This paper investigates the relationship between market reaction to earnings surprises and institutional concentration in the firm's shareholders base. We use data from the Polish stock market where pension funds form a homogenous and highly competitive investor class with an increasing share in the market capitalisation and trading volume. We find evidence that higher pension funds holdings in a company tend to reduce the magnitude of market reaction around public disclosures. We interpret these findings as an information advantage that funds have over individual investors. The advantage, however, does not influence the market in a systematic way, as we also find that company mangers are selective as to the type of information they provide to the market prior to their scheduled disclosures.

Keywords: Earnings surprises, public disclosure, information advantage, institutional investors

JEL Classification: G14, G23, M41

Suggested Citation

Tavakkol, Amir and Korczak, Piotr, Institutional Investors and the Information Content of Earnings Announcements: The Case of Poland (January 2004). Available at SSRN: https://ssrn.com/abstract=490723

Amir Tavakkol (Contact Author)

Kansas State University - College of Business Administration ( email )

Dept. of Finance
Manhattan, KS 66506
United States
913-532-6892 (Phone)
913-532-7024 (Fax)

Piotr Korczak

University of Bristol - Department of Finance and Accounting ( email )

8 Woodland Road
Bristol BS8 1TN
United Kingdom
+44 117 394 1491 (Phone)

HOME PAGE: http://sites.google.com/view/piotrkorczak/home

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