How informed are actively trading institutional investors? Evidence from their trading behavior before a break in a string of consecutive earnings increases

Journal of Accounting Research

Volumn 42, Issue 5, 2004, Pages 895-927

  Ke, Bin ^a   Petroni, Kathy ^b  

^a PENNSYLVANIA STATE UNIVERSITY   (United States)

^b MICHIGAN STATE UNIVERSITY   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 9944226118     PISSN: 00218456     EISSN: None     Source Type: Journal    
DOI: 10.1111/j.1475-679X.2004.00160.x     Document Type: Article

References (37)

1. ALI, A.; C. DURTSCHI; B. LEV; AND M. TROMBLEY. "Changes in Institutional Ownership and Subsequent Earnings Announcement Abnormal Returns." Journal of Accounting, Auditing, & Finance 19 (2004): 221-48.
2. BALSAM, S.; E. BARTOV; AND C. MARQUARDT. "Accruals Management, Investor Sophistication, and Equity Valuation: Evidence from 10-Q Filings." Journal of Accounting Research 40 (2002): 987-1012.
3. BARTH, M.; J. ELLIOT; AND M. FINN. "Market Rewards Associated with Patterns of Increasing Earnings." Journal of Accounting Research 37 (1999): 387-413.
4. BARTOV, E.; S. RADHAKRISHNAN; AND I. KRINSKY. "Investor Sophistication and Patterns in Stock Returns After Earnings Announcements." The Accounting Review 75 (2000): 43-63.
5. BERNARD, V., AND J. THOMAS. "Post-Earnings Announcement Drift: Delayed Price Response or Risk Premium?" Journal of Accounting Research 27 (Supplement 1989): 1-36.
6. BHUSHAN, R. "An Informational Efficiency Perspective on the Post-Earnings Announcement Drift." Journal of Accounting & Economics 18 (1994): 24-66.
7. BOWEN, R.; A. DAVIS; AND D. MATSUMOTO. "Do Conference Calls Affect Analysts' Forecasts?" The Accounting Review 77 (2002): 285-316.
8. BUSHEE, B. "The Influence of Institutional Investors on Myopic R&D Investment Behavior." The Accounting Review 73 (1998): 305-33.
9. BUSHEE, B. "Do Institutional Investors Prefer Near-Term Earnings over Long-Run Value?" Contemporary Accounting Research 18 (2001): 207-46.
10. BUSHEE, B.; D. MATSUMOTO; AND G. MILLER. "Managerial and Investor Responses to Disclosure Regulation: The Case of Reg FD and Conference Calls." The Accounting Review 79 (2004): 617-43.
11. BUSHEE, B., AND C. NOE. "Corporate Disclosure Practices, Institutional Investors, and Stock Return Volatility. " Journal of Accounting Research 38 (Supplement 2000): 171-202.
12. CARHART, M. "On Persistence in Mutual Fund Performance." Journal of Finance 52 (1997): 57-82.
13. CHEN, X., AND Q. CHENG. "Institutional Holdings and Analysts' Stock Recommendations." Working paper, University of British Columbia, 2003.
14. COLLINS, D.; G. GONG; AND P. HRIBAR. "Investor Sophistication and the Mispricing of Accruals." Review of Accounting Studies S (2003): 251-76.
15. COOK, R. D. "Detection of Influential Observations in Linear Regression." Technometrics 19 (1977): 15-18.
16. CREADY, W. "Determinants of Relative Investor Demand for Common Stocks: Professional Adaptation." Journal of Accounting, Auditing, & Finance (1994): 487-509.
17. DEANGELO, H.; L. DEANGELO; AND D. SKINNER. "Reversal of Fortune: Dividend Signaling and the Disappearance of Sustained Earnings Growth. "Journal of Financial Economics 40 (1996): 341-71.
18. EL-GAZZAR, S. "Predisclosure Information and Institutional Ownership: A Cross-Sectional Examination of Market Revaluations During Earnings Announcement Periods." The Accounting Review (1998): 119-29.
19. FALKENSTEIN, E. "Preferences for Stock Characteristics as Revealed by Mutual Fund Portfolio Holdings." Journal of Finance 51 (1996): 111-36.
20. FAMA, E., AND K. FRENCH. "Common Risk Factors in the Returns on Stocks and Bonds."Journal of Financial Economics 33 (1993): 3-56.
21. FOSTER, G.; C. OLSEN; AND T. SHEVLIN. "Earnings Releases, Anomalies, and the Behavior of Security Returns." The Accounting Review (1984): 574-603.
22. FRANKEL, R.; M. JOHNSON; AND D. SKINNER. "An Empirical Examination of Conference Calls as a Voluntary Disclosure Medium. " Journal of Accounting Research (1999): 133-50.
23. GOMPERS, P., AND A. METRICK. "Institutional Investor and Equity Prices." Quarterly Journal of Economics (2001): 229-59.
24. JIAMBALVO, J.; S. RAJGOPAL; AND M. VENKATACHAIAM. "Institutional Ownership and the Extent to Which Stock Prices Reflect Future Earnings." Contemporary Accounting Research 19 (2002): 117-45.
25. KE, B.; S. HUDDART; AND K. PETRONI. "What Insiders Know About Future Earnings and How They Use It: Evidence from Insider Trades." Journal of Accounting & Economics 35 (2003): 315-46.
26. KE, B., AND S. RAMALINGEGOWDA. "Do Institutional Investors Exploit the Post-Earnings Announcement Drift?" Journal of Accounting & Economics 39 (2005): Forthcoming.
27. KIM, O., AND R. E. VERRECCHIA. "Trading Volume and Price Reactions to Public Announcements." Journal of Accounting Research 29 (1991): 302-21.
28. LEV, B., AND D. NISSIM. "Institutional Investors and Share Price Accuracy." Working paper, New York University, 2003.
29. MATSUMOTO, D. "Management's Incentives to Avoid Negative Earnings Surprises." The Accounting Review 77 (2002): 483-514.
30. NATIONAL INVESTOR RELATIONS INSTITUTE (NIRI). "Survey of Corporate Disclosure Practices Among U.S. Companies." NIRI, 1998.
31. NATIONAL INVESTOR RELATIONS INSTITUTE (NIRI). "Updates on Issues Vital to the Practice of Investor Relations. SEC Extends Comment Period for Proposed Rule Fair Disclosure. NIRI Submits Comment Letter to the SEC for Proposed Rule Fair Disclosure." NIRI, April 11, 2000.
32. ROGERS, W. H. "SG17: Regression Standard Errors in Clustered Samples." Stata Technical Bulletin 13 (1993): 19-23.
33. SEYHUN, N. Investment Intelligence from Insider Trading. Cambridge, MA: MIT Press, 1998.
34. SKINNER, D. "Why Firms Voluntarily Disclose Bad News." Journal of Accounting Research (1994): 38-60.
35. SLOAN, R. "Do Stock Prices Fully Reflect Information in Accruals and Cash Flows About Future Earnings?" The Accounting Review 71 (1996): 289-315.
36. UTAMA, S., AND W. CREADY. "Institutional Ownership, Differential Predisclosure Precision and Trading Volume at Announcement Dates." Journal of Accounting and Economics 24 (1997): 129-50.
37. WALTHER, B. "Investor Sophistication and Market Earnings Expectations." Journal of Accounting Research (1997): 157-79.