Advanced corporate reporting assignment

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Running head: ADVANCED CORPORATE REPORTINGAdvanced Corporate ReportingName of the Student:Name of the University:Authors Note:
ADVANCED CORPORATE REPORTING1Table of Contents4.0 Report/Essay:.......................................................................................................................2Introduction:...............................................................................................................................2Importance/relevance of earnings announcements:...................................................................2Empirical evidence on the wealth effects of earnings announcements:.....................................3Methodology:.............................................................................................................................5Analysis of the result:.................................................................................................................5Conclusion:..............................................................................................................................11Reference and Bibliography:....................................................................................................12Appendices:..............................................................................................................................15
ADVANCED CORPORATE REPORTING24.0 Report/Essay:Introduction:The overall assessment mainly focuses in deriving the impact of earnings report onshare price performance of the company. In addition, the assessment focuses on detecting theabnormal returns, which is achieved by the company. Moreover, the importance or relevanceof earnings announcement is effectively depicted in the report, which could allow investor tounderstanding the impact of announcements on share price. The valuation of abnormalreturns, Steyx Squared and T-Test is being conducted to identify the calculation and positionof the company to generate high return. Moreover, the impact of good announcement and badannouncement on shar price of the company is appropriately evaluated. Furthermore, thecalculation will allow investor to investigate the wealth effects of earnings announcementmade by firms. The use of slope, intercept, Steyx and Rsquared is used in detecting theabnormal returns and expected return of the 10 shares.Importance/relevance of earnings announcements:Earnings announcement is detected to be the most viable information, which coulddepict the financial position of the company. In addition, financial performance of thecompany is identified with the help of announcement, which relatively depicts their actualfinancial condition. The investors use of fundamental and technical analysis to derive thevaluation of their share price, which might help in detecting its actual share price (Marshall,Schroeder and Yohn 2017). According to IFRS, the companies mainly need to provide all therelevant details regarding the financial progress on all quarters. Moreover, with the whelp inearning announcement the investors can confirm the management’s forecasting. The earningsannouncement is essential, as it portrays the path way, which has been adopted by the
ADVANCED CORPORATE REPORTING3company to achieve sustainable growth. Lastly, companies by depicting the announcementscan portray their operational capability to the investor, which might help in mentioning theiroperations.Empirical evidence on the wealth effects of earnings announcements:The empirical evidence on effectiveness of earnings announcements on wealth aredepicted as follows.According to Ball and Shivakumar (2008), the relevant information presented in theearnings report are effectively depicted. The journal states the impact and significance ofearning announcements, where all the new information is presented in the annual report. Theearnings announcement evaluation in the journal indicates the financial performance, whichcould improve profits of the company. Therefore, the journal evaluates the performance ofearnings announcement in improving shar price of the company.According to MacKinlay (1997), the impact of announcement is relatively evaluated,which might help investors in generating high level of returns. Moreover, the author indicatedthe positive attribute of announcement, which helps in improving its share valuation.Furthermore, the author stated that announcement having positive market power couldincrease shar price of the organisation. The empirical research indicates the power of positiveannouncement, which could improve demand of shares among potential investors.According to Afego (2013), the impact of annual report announcements on stockmarket performance is evaluated. In addition, the journal sheds light on the impact ofearnings announcement and how share price of the company increases due to rising financialposition. The positive and adverse impact of financial announcement is effectively evaluatedby the paper, which indicates the influence of announcement earnings on share price of the
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