The relationship insurance role of financial conglomerates: Evidence from earnings announcements

被引：1
|
作者：
Chen, Jiun-Lin [1 ]
Sanger, Gary C. [2 ]
Song, Wei-Ling [2 ]
机构：
[1] Valparaiso Univ, Coll Business, Valparaiso, IN 46383 USA
[2] Louisiana State Univ, EJ Ourso Coll Business, Baton Rouge, LA 70803 USA
来源：
JOURNAL OF CORPORATE FINANCE | 2019年 / 58卷
关键词：
Institutional trading; Banking relationships; Price support; Earnings surprises; Momentum; PANEL-DATA; UNDERWRITER; INFORMATION; INVESTORS; MOMENTUM; RETURNS; BANKS; RISK;
D O I：
10.1016/j.jcorpfin.2019.06.006
中图分类号：
F8 [财政、金融];
学科分类号：
0202 ;
摘要：
This paper uses earnings announcements to analyze the trading behavior and associated price impacts of institutions that have a lending or underwriting relationship with client firms and also hold client firms' shares. Buying support from relationship institutions mitigates the negative impact of earnings surprises on client firms' stock prices, predicts subsequent negative earnings surprises, and is also associated with less selling by independent institutions holding the same firms' shares. Price reactions for firms without relationship institutions are significantly larger. Price support from relationship institutions appears to help resolve uncertainty accompanying clients' temporary earnings shocks, thus reducing noise in the capital markets.
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页码：505 / 527
页数：23
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