Extreme negative information and the market adjustment process: the case of corporate bankruptcy.

From: Quarterly Journal of Business and Economics | Date: March 22, 1992| Author: | Copyright information

Despite the conventional wisdom that equity prices adjust rapidly to new information, several studies provide contrary evidence in the presence of severe price declines. In the spirit of Lakonishok and Smidt (1988), the generality of this finding is investigated through the use of an independent sample. The current results are consistent with a rejection of the sampling error hypothesis. Various alternative explanations consistent with investor rationality are explored

Introduction

It widely is believed that financial markets adjust rapidly to release of firm-specific ...

Related newspaper, magazine, and trade journal articles from HighBeam Research

(Including press releases, facts, information, and biographies)

Negative publicity: What companies need to know about public reactions
Magazine article from: Public Relations Quarterly ; ...first decide how to interpret the negative information and then now to respond to it while...of how customers react to hearing negative information about a company. By improving our...manipulate individual behavior. Negative information has traditionally been broadcast...
Users value newspapers more to judge products.
Newspaper article from: Economic Times (New Delhi, India) ; ...instinctively ended up counter-arguing negative information about the particular product or...credibility had little effect on how the negative information affected the brands. Negative information about intrinsic brand attributes...
Did not lie under oath, Rice insists
Newspaper article from: Chicago Sun-Times ; ...deposition when asked if he had any "negative information" before demoting high-ranking officers...Rice said he thought "verifiable" negative information was being sought in the 1984 deposition...deposition, the attorney elicited negative information from me concerning certain ...
The Marginal Incentive of Insider Trading: An Economic Reinterpretation of the Case Law
Magazine article from: The University of Memphis Law Review ; ...with allowing insider trading on negative information (sales), whereas losses often result...will be disclosed much sooner than negative information, the marginal incentive (and marginal...importance of insider trading on negative information as a deterrent. The case law on...
Ethical Consumerism: Are Unethical Labour Practices Important to Consumers?
Magazine article from: Journal of Research for Consumers ; ...investigates whether negative information about the labour practices...with one group given negative information about Nike before undertaking...This study finds that negative information can elicit some emotional...
Credit Reporting Agencies Reject an Important a Step to Help Hurricane Survivors
Newspaper article from: U.S. Newswire ; ...run and keep a credit score before negative information starts to pile up in Katrina survivors...creditors can decide not to report negative information about people in disaster-affected...free to decide to keep reporting negative information; no law prevents creditors from...
NEGATIVE INFORMATION: David Fielker's big domino puzzle on the road
Magazine article from: Mathematics Teaching ; ...find it hard to handle - negative information. However, in the context of this puzzle, a piece of negative information: 'That can't be the double...children spontaneously convert negative information into positive and solve...
Push polls: 'Godzilla' stomps across the political landscape
Newspaper article from: Charleston Gazette ; ...toothpaste do not call our homes with negative information on their rival Colgate, in politics...cost $10 to make. They do contain negative information about the opposing candidate, as...that both kinds of polls contain negative information and ultimately leave the voter frustrated...
The Social Fabric and Innovation Diffusion: Symbolic Adoption of Food Irradiation*
Magazine article from: Rural Sociology ; ...design to examine the effects of negative information acquisition, compliance with opinion...results indicated that, initially, negative information acquisition, even when accompanied...investigations of the effects of positive and negative information acquisition on consumer ...
Election '97: Negative campaigning works
Newspaper article from: The Independent - London ; ...more informative. Given equal amounts of positive and negative information about a candidate, the overall impression of voters is...generally positive view of others with the result that negative information is seen as more salient. "If one expects the average...

Find more facts and information related to the article "Extreme negative information and the market ..."