JOURNAL OF ACCOUNTING, FINANCE, ECONOMICS, AND SOCIAL SCIENCES

Volume 6, Number 2, 2021, 41 – 50

Investors’ behavior to earnings announcement during the COVID-19 pandemic: Evidence from Cambodia

 

Muhammad M. Ma’aji, PhD,
CamEd Business School, Cambodia
Email: [email protected]

Lee Siang Hi, MSc,
CamEd Business School, Cambodia
Email: [email protected]

DOI: https://doi.org/10.62458/jafess.160224.6(2)41-50

Received: August 2021
Revised: November 2021
Accepted: December 2021

ABSTRACT

This study investigates the reaction of investors to annual earnings releases as reflected in the share price movements of common stocks and volume of trade during the COVID-19 pandemic. Event methodology is employed, and the returns in an event window, defined conventionally as the days before to days after a firm-specific public earnings announcement, are not abnormal. We provide an apparent example where investors did not react to firm-specific positive earnings announcements. This could be influenced by the government in response to COVID-19 as we have seen governments and central banks worldwide quickly enacted sweeping and sizable fiscal and monetary stimulus measures to limit the human and economic impact of the COVID-19 pandemic. These actions during an economic downturn or crisis have helped to stabilize the economy and increase confidence in the market.

Keywords: Event study, information and market efficiency, corporate earnings announcement, COVID-19, Cambodia market

 

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Ma’aji, M., M. & Lee, S., H. (2021). Investors’ behavior to earnings announcement during the COVID-19 pandemic: Evidence from Cambodia. JAFESS, 6(2), 41 – 50. https://doi.org/10.62458/jafess.160224.6(2)41-50

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