Earnings Information and Stock Market Efficiency

Dr. Nympha Rita Joseph, Dr. Naveen Kumar, Dr. Lokesh Dr. Lokesh, K. Abhaya Kumar

Abstract


This paper examines earnings information and stock market efficiency in Bahrain by taking annual earnings announcement as an event. The study is based on 32 companies listed on Bahrain Bourse. We have used event study methodology and t test. The behaviour of AARs and CAARs are examined for 30 days before and 31 days after the announcement of annual earnings. The results of the study contradict semi-strong form of efficient market hypothesis. 

Keywords


efficient market hypothesis; abnormal returns; stock market; market efficiency.

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