Investor Sophistication and Patterns in Stock Returns after Earnings Announcements

By Eli Bartov, Suresh Radhakrishnan, I. Krinsky. 2000

742 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/4e48d6553881e09b7b7b58febeb89bc7bb9361a4

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Citations in the corpus

Beating Earnings Benchmarks and the Cost of Debt (2008, methodology): “2 Prior research uses high institutional ownership to proxy for investor sophistication and richer firm information environments (e.g., Ayers and Freeman 2003; Bartov et al. 2000; Battalio and Mendenhall 2005; Collins et al. 2003; Hand 1990; Jiambalvo et al. 2002; Walther 1997).”
The Role of Anchoring Bias in the Equity Market: Evidence from Analysts’ Earnings Forecasts and Stock Returns (2012, neutral): “Prior research also confirms that institutional investors are more sophisticated than retail investors (Bartov, Radhakrishnan, and Krinsky (2000), Bhushan (1994)).”
Market Reaction to Verbal Components of Earnings Press Releases: Event Study Using a Predictive Algorithm (2006, positive): “Prior research shows evidence that abnormal returns around earnings announcements are negatively related to the percentage of institutional ownership (Bartov et al. 2000; Hotchkiss and Strickland 2003).”
Ownership Level, Ownership Concentration and Liquidity (2007, neutral): “Evidence of institutions' information superiority includes Szewczyk et al. (1992), Alangar et al. (1999), and Bartov et al. (2000).”
Investor Competition Over Information and the Pricing of Information Asymmetry (2011, background): “…rely on two key assumptions: (1) institutional investors are also relatively more informed investors (Arbel and Strebel 1983; Sias and Starks 1997; Bartov et al. 2000; Jiambalvo et al. 2002), and (2) the competition between informed investors captures the competition between informed traders…”
Institutional Ownership, Volatility and Dividends (2009, positive): “Negative Correlation: Institutional Sophistication and Aversion to Volatility There is evidence that institutional investors are more sophisticated and well informed than individual investors (e.g., Szewczyk et al., 1992; Alangar et al., 1999; Bartov et al., 2000).”
The empirical relationship between ownership characteristics and audit fees (2007, background): “Institutional shareholders are often characterized as the sophisticated ownership group in various research contexts (e.g., Bushee, 1998; Utama and Cready, 1997; El-Gazzar, 1998; Duggal and Millar, 1999; Bartov et al., 2000; Wahal and McConnell, 2000; Balsam et al., 2002; Chung et al., 2002; Mitra”
Do Individual Investors Cause Post-Earnings Announcement Drift? Direct Evidence from Personal Trades (2008, neutral): “Bartov et al. (2000) provide a degree of support for this argument.”
Investor Trading and the Post Earnings Announcement Drift (2011, positive): “Bartov et al. (2000) find that the RW drift decreases with the level of institutional ownership and conclude that institutional investors improve on the earnings-processing problems that cause the RW drift.”