Corpus ID: 208029692

The Signal Quality of Earnings Announcements: Evidence from an Informed Trading Cartel

@inproceedings{Xie2019TheSQ,
  title={The Signal Quality of Earnings Announcements: Evidence from an Informed Trading Cartel},
  author={Chloe Xie and chloex},
  year={2019}
}
  • Chloe Xie, chloex
  • Published 2019
  • This study examines the revealed preference of informed traders to infer the signal quality of earnings announcements. From 2011 to 2015, a cartel of sophisticated traders illegally obtained early access to firm press releases prior to publication and traded over 1000 earnings announcements. I study their constrained profit maximization: which earnings announcements they chose to trade vs. which ones they forwent trading. Consistent with theory, these traders targeted more liquid earnings… CONTINUE READING

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    Earnings Announcements and Competing Information
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