Earnings Announcements in the Hospitality Industry: Do You Hear What I Say?
No Access Until
This study examines how the stock prices of publicly traded hospitality firms respond to quarterly earnings announcements. We find that after the initial price reaction to unexpectedly good or bad news, stock prices continue to drift in the same direction for up to 20 trading days following an announcement, suggesting that the new information is incorporated into prices gradually. Although this implies that hospitality stock prices are not perfectly efficient, we note that the prices of hospitality stocks generally appear more efficient than stock prices in the broader market, where drifts lasting up to 60 trading days are common. Similarly, we find that stock analysts are somewhat slow in revising their forecasts for future earnings in the hospitality sector, but this result is less pronounced than in the broader market.
Journal / Series
Volume & Issue
hospitality firms; stock prices; earnings announcements; communication
Number of Workers
Based on Related Item
Has Other Format(s)
Part of Related Item
Link(s) to Related Publication(s)
Link(s) to Reference(s)
Previously Published As
Required Publisher Statement: © Cornell University. This report may not be reproduced or distributed without the express permission of the publisher