Yes

Yes, the scientific approach can be used to predict when and how investors will react to earnings announcements.
In this case, investors’ reactions are measured through the changes in share prices (increase/decrease) following the earnings announcements, allowing abnormal gains/losses to be made.
The research problem to test is whether share prices will respond to new information associated with the announcements, and when that will happen relative to the announcement day.
This can be examined by conducting an event study investigating the share returns associated with the release of information relating to share trades. It would be expected that investors would react to earnings announcements.

x

Hi!
I'm Kerry!

Would you like to get a custom essay? How about receiving a customized one?

Check it out