@article{6788dd8ec1b24624a5eb56381d19b9f1,
title = "Management earnings forecasts, earnings announcements, and institutional trading in China",
abstract = "In this study, we investigate the trading behavior of institutional investors in China according to management earnings forecasts (MEFs) and earnings announcements (EAs). MEFs are mandatory under the stringent regulatory framework in China. We find evidence that both MEFs and EAs have an effect on the market. However, MEFs have a bigger effect on the market than do EAs. According to a sample of semiannual observations of firms from 2003 to 2008, we find that changes in the stock ownership of institutions are positively associated with EAs but not significantly associated with MEFs. When we further examine the relations between institutional characteristics and trading strategies, we find that growth funds exploit the arbitrage opportunity of MEFs.",
keywords = "China, Earnings announcement, Institutional trading, Management earnings forecasts",
author = "CHEUNG, {Stephen Y L} and Xuandong Luo and Weiqiang TAN and Tusheng Xiao",
note = "Funding Information: Yan-Leung Cheung (scheung@ied.edu.hk) is the president and chair professor of public policy at the Hong Kong Institute of Education, Hong Kong SAR. Xuandong Luo (luoxuandong@vip.sina .com) is a PhD student in finance in the School of Finance at Shanghai University of Finance and Economics, Shanghai, P.R. China. Weiqiang Tan (wqtan@hkbu.edu.hk), corresponding author, is an assistant professor of finance in the School of Business at Hong Kong Baptist University, Hong Kong SAR. Tusheng Xiao (tsh.xiao@aliyun.com) is an assistant professor of accounting in the School of Accountancy at Central University of Finance and Economics, Beijing, P.R. China. The authors thank Yunhao Dai, In-Mu Haw, Yu Xin, Honglin Yu, Feida Zhang, and seminar participants at Sun Yat-sen University and University of International Business and Economics for their helpful comments and suggestions. Tan is grateful for the funding of this research by Hong Kong Baptist University. The authors alone are responsible for all limitations and errors that may relate to the study and the paper.",
year = "2014",
doi = "10.1080/1540496X.2014.1013858",
language = "English",
volume = "50",
pages = "184--203",
journal = "Emerging Markets Finance and Trade",
issn = "1540-496X",
publisher = "M.E. Sharpe Inc.",
}