Do Individual Investors Cause Post-earnings Announcement Drift ? Direct Evidence from Personal Trades

@inproceedings{Hirshleifer2002DoII,
  title={Do Individual Investors Cause Post-earnings Announcement Drift ? Direct Evidence from Personal Trades},
  author={David Hirshleifer and James N. Myers and Linda A. Myers and Siew Hong Teoh},
  year={2002}
}
This study examines how individual investor trade in response to quarterly earnings surprises and the relation of trades to subsequent returns. Individuals are highly significant net buyers after negative earnings surprises; net buying is weaker after positive surprises. There is no indication that trading by any of our investor subcategories explains the concentration of drift at subsequent earnings announcement dates. Post-announcement individual net buying is a significant negative predictor… CONTINUE READING
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