Search Results for information-content-of-advertising-

Abstract

This research aims to study the impact of information asymmetry on stock price forecasting within the context of the informational content of announcements from a sample of companies listed on the stock exchange. This is achieved by identifying companies that have distributed dividends for at least three consecutive years. Accordingly, the "event window" was employed, providing a systematic framework for studying stock movements on specific dates. This framework allows the companies in the research sample to understand how financial markets react to new information about the market under study. The focus is on the role of the event window in measuring informational content. This emphasis on the event window stems primarily from recent trends toward announcing earnings during after-market hours. It is also attributed to the lack of systematic research on the length of the event window, which is when the benefit derived from earnings information is at its maximum. The researchers used the Multiple regression test, the T-Test, and the Scenario style to test the research hypothesis, which led to the conclusion that financial returns are only achieved through the informational content of the profit distribution announcement, and that the maximum window for informational content includes only the day of trading of the announcement. This view reflects the event window that maximizes information related to profits by relying on the timing of profit announcements during non-trading hours versus trading hours.