【报告主题】Pricing the Priceless: The Financial Cost of Biodiversity Conservation
【主讲嘉宾】黄侃元，香港中文大学（深圳）经管学院助理教授
【报告时间】2024年6月11日 13:00
【报告地点】会计学院108室
【内容提要】
How does management guidance affect market reactions to earnings announcements? To address this question, we use a recent regulatory change in China that shifted guidance from mandatory to voluntary for a set of China’ A-share firms. A large fraction of treated firms immediately stopped issuing guidance. The drop in management guidance results in significant reductions in trading volume around subsequent earnings announcements. This effect is primarily driven by small firms. We find that treated firms experience lower return volatility and reduced bid-ask spread during earnings announcements, consistent with an improvement in market quality following the cessation of guidance. Overall, our results suggest that earnings guidance can have negative stock market consequences for firms, as it can attract noise trade that induces volatility and imposes liquidity costs on other traders around earnings announcements.