Question
Consider again the amplification mechanism we discussed based on Hong, Kubik and Fishman (2012). They show that the immediate market response to good earnings news
Consider again the amplification mechanism we discussed based on Hong, Kubik and Fishman (2012). They show that the immediate market response to good earnings news is higher when a stock is highly shorted. Why does the mechanism only produce price amplification of good earnings surprises? Why not bad surprises?
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Economics Principles and Policy
Authors: William Baumol, Alan Blinder
13th edition
1305280595, 1305280598, 9781305465626 , 978-1305280595
