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This paper reports the results of the effects of the release, in the United Kingdom, annual reports and accounts (ARA), on security prices and trading volume of the U.K. firms. If the information reported in the annual reports and accounts (ARA) is relevant, the U.S. security market will respond to the release news through return and volume variances. Both signals are indicators of the relevance of the annual reports and accounts. The results of the analysis suggest the existence of unexpected returns to the annual reports and accounts and no corresponding U.S. trading volume response. The price results are in marked contrast to the findings of previous research that examined the information content of U.S. domestic annual reports, but do not detect a stock price response (e.g., Foster et al. 1986; Bernard and Stober 1989; Cready and Mynatt 1991). Our stock price analyses indicate that non‐U.S. GAAP accounting measures do not impede U.S investors' ability to use U.K. firms' ARA in valuing the sample firms. Indeed, U.S. investors use information from the ARA in their valuation of U.K. firms. Since trading responses to a disclosure are generally more easily detected than price responses (Cready and Hurtt 1999), these findings jointly suggest the provincial nature of the ARA release.

This analysis is the first to explore the overall roles of the offsetting attraction and distraction influences of earnings news in shaping the level of attention given to the equity market by market participants.

We use multivariate regression approach and examine how trading activity levels within the set of non-announcing firms varies with respect to collective measures of contemporaneous earnings announcement visibility. We employ attention and information transfer theories in our hypothesis development.

This analysis is the first to explore the overall roles of the offsetting attraction and distraction influences of earnings news in shaping the level of attention given to the equity market by market participants. Specifically, we examine how the number of earnings announcement activity affects investor attention as measured by trading volume given to the set of non-announcing firms. We find that while earnings announcement numbers lower trading volume responses to earnings news among announcing firms (consistent with Hirshleifer et al., 2009), their distractive influence does not carry over into the market as a whole. More importantly, investor attention to both the overall market and the larger subset of non-announcing firms increase in response to earnings news activity levels. However, after decomposing the announcers as same-industry and different-industry announcers, we find that investor attention to the non-announcing segment of the market increases with the number of same-industry announcers, but actually seems to decrease (i.e. they distract attention) with the number of different-industry announcers. We also find that the associated earnings surprise brings attention to non-announcing firms (consistent with earnings news is relevant to overall market price movements). Finally, we find that distraction effects are attenuated in the financial crisis period.

A promising area of future research is to examine the relation between market pricing efficiency and aggregate earnings activity for the set of non-announcing firms. Although it will be a challenging task to measure pricing efficiency for the non-announcers, this will complement the prior literature only focusing on the announcing segment of the market.

First, instead of assessing the impact of number of earnings announcements on the subset of announcing firms, which is a micro-level perspective, we identify the impact of news arrivals on all firms in the market including the vastly larger set of non-announcing firms. Second, by decomposing the number of announcements into industry-related and -unrelated news we show that different types of news arrivals spark investor attention differently, suggesting the importance of categorizing the news into related and unrelated industries.

A potential future area of research identified by our analysis is to investigate what type of investors' attention is distracted or attracted during the earnings announcements. A promising area of future research is to examine the relation between market pricing efficiency and aggregate earnings activity for the set of non-announcing firms.

This paper is the first one exploring the overall roles of the offsetting attraction and distraction influences of earnings announcements in shaping the level of investor attention given to the equity market by market participants. Our findings should be of interest to investors, analysts, security market regulators and researchers.

For this study, the authors document day-of-the-week trading patterns of individual investors using a unique data set of NYSE-listed firms and discuss their influence on the Monday effect. It is found that Monday stock returns are generally lower than those of other weekdays and, on average, negative. Unlike previous researchers, the authors use actual trading data for individual investors rather than proxies to measure individual investor activity, such as the percentage of odd-lot trading. The results demonstrate that the trading activity of individual investors on Mondays is lower than previously documented. This finding contradicts the long-held belief that individual investors are most active on Mondays. In addition, the authors find that individual investors’ trading activity during the week broadly follows corporate announcement patterns. The least amount of firm-specific information is released on Friday, followed by Monday, Tuesday, Thursday and Wednesday. Accordingly, individual investors trade the least number of shares on Friday, followed by Monday, Tuesday, Thursday and Wednesday, strengthening the argument that individual investors trade on attention-grabbing stocks. Taken together, the authors’ findings challenge those of previous studies that hold individual investors responsible for the Monday effect. The paper aims to discuss this issue.

The authors use actual trading data for individual investors rather than proxies to measure individual investor activity, such as the percentage of odd-lot trading, to study the existence of Monday effect in stock prices.

The results show that the trading activity of individual investors on Mondays is lower than previously documented. This finding contradicts the long-held belief that individual investors are most active on Mondays. In addition, the authors find that individual investors’ trading activity during the week broadly follows corporate announcement patterns.

The authors find that individual investors’ trading activity during the week broadly follows corporate announcement patterns. The least amount of firm-specific information is released on Friday, followed by Monday. Accordingly, individual investors trade the least number of shares on Friday, followed by Monday, strengthening the argument that individual investors trade on attention-grabbing stocks. Taken together, the authors’ findings challenge those of previous studies that hold individual investors responsible for the Monday effect.

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The authors find that individual investors’ trading activity during the week broadly follows corporate announcement patterns. The authors challenge the commonly hold view that individuals often make trading decisions during weekends and thus trade on Mondays, and find that the least amount of firm-specific information is released on Friday, followed by Monday. Accordingly, individual investors trade the least number of shares on Friday, followed by Monday. Taken together, the authors’ findings challenge those of previous studies that hold individual investors responsible for the Monday effect.

This paper examines the effect of institutional investors on the trading volume reaction to management forecasts of annual earnings. Based on a sample of forecasting firms between 1990 and 1992, institutional investors are examined as heterogeneous types, rather than as a single group as done in prior research. The findings contribute to the growing literature on institutional investor types in two ways: (1) institutional categories differ in their trading patterns, and (2) if the categories are classified into active and inactive types, then greater trading by active institution‐types signals greater investor‐level information asymmetries and greater trading by inactive institution‐types signals lower investor‐level information asymmetries. Overall, the results suggest that increased firm voluntary disclosures, as encouraged by the SEC and the AICPA, may be differentially informative to different types of investors.

The rate of alliance formation by firms has greatly increased over the past two decades. Congruently, firm interest in corporate social responsibility (CSR) initiatives has also increased. Signaling theory suggests that firms may be increasing their CSR strategies in an effort to signal their willingness to operate within social mores. However, firms are faced with the problem of how to communicate their social commitment objectively to stakeholders. We argue that firms are forming CSR alliances in an attempt to signal an objective message to stakeholders concerning their commitment to CSR. To provide insight into these explanations, we compare the Total CSR performance (TCSR) scores of firms that form CSR alliances with those firms that do not. We control for firm size, leverage, profitability, and industry. We find that firms that form CSR alliances generally have higher TCSR scores, which suggests that one of the reasons that firms form these alliances is to publicize their stronger social and environmental records to stakeholders.

Recent research has examined the effect of the Financial Services Modernization Act of 1999, more commonly known as the Gramm–Leach–Bliley Act (GLB), on the market value of U.S. commercial banks, life insurers, property-liability insurers, thrifts, finance companies, and securities firms. This study fills a gap in our understanding of the Act by measuring the price and trading volume effects of the GLB on U.S.-listed foreign banks. A primary contribution of this study is to examine the role, if any, of two corporate governance perspectives, the stakeholder (code law), and shareholder (common law) models, in a cross-sectional analysis of foreign bank market reaction to the GLB.

Using a generalized least squares (GLS) portfolio approach, Corrado's rank statistic, and confirmed by the traditional market model approach, we find significant negative share price reactions to certain legislative announcements surrounding the passage of the GLB. Trading volume reactions corroborate the significant share price responses. In general, our results indicate that investors in foreign banks reacted negatively to key legislative action. In a cross-sectional analysis, younger, higher-risk foreign banks with less concentrated ownership and more subordinated debt from countries with higher quality accounting standards appear to have more positive (or less negative) share price reactions.

This paper aims to explore whether string quartets (SQs) adopt self‐managed‐team (SMT) principles in line with organizational models of team work. This exploration is significant in face of the status of the SQ as one of the leading and prototypical ensembles in Western music.

Members of 22 leading SQs around the world were contacted and asked to fill out a questionnaire which measures SMT characteristics in managerial teams while referring to their own SQ ensemble.

Results showed that SMT levels of all SQs were extremely high (M=4.39, SD =0.39, on a 1 to 5 scale). In addition, four factors were revealed in this questionnaire: Interpersonal relations and shared monitoring, Leadership, Management style, and Resources explaining 18.4, 15.9, 14.2, and 11.9 percent of the variance, respectively.

The current sample is limited in size and may not adequately represent professional SQs worldwide. Nevertheless, this study demonstrates that SQs actually work as SMTs. Additionally, the SMT frame of SQs is expressed in distinct factors of characteristics.

The current study is one of a few investigations that examined descriptions of SQ members about behaviors in their own musical ensembles. This study suggests that successful SQs may serve as a benchmark for various SMTs in organizational settings.