Earnings information released by companies in Australia has evidence suggesting the existence of intra-industry information transfers.This research has been confirmed by the Australian researches:

A) Firth (1976)
B) Foster (1981)
C) Clinch and Sinclair (1987)
D) Freeman and Tse (1992)

Question

Earnings information released by companies in Australia has evidence suggesting the existence of intra-industry information transfers.This research has been confirmed by the Australian researches:

A) Firth (1976)
B) Foster (1981)
C) Clinch and Sinclair (1987)
D) Freeman and Tse (1992)

Quizplus · Accepted Answer

Earnings reports that convey unexpected good news are associated with the rise in share prices of other firms in the same industry.As is unexpected bad news is associated with relative declines for the announcing firm as well as others in the same industry.This evidence strongly suggests intra-industry information transfers.

Earnings Information Released by Companies in Australia Has Evidence Suggesting