That is one of the conclusions drawn by economist Leon Zolotoy in his research, for which he will be awarded a PhD at Tilburg University in the Netherlands on 25 June. Zolotoy researched how international stock markets react to new information.
The Sarbanes-Oxley Act was introduced in July 2002, partly as a result of the corporate scandals involving WorldCom, Enron, Tyco and QWest. The Act’s strict disclosure requirements were designed to restore investors’ and analysts’ confidence in the stock market.
Economist Leon Zolotoy studied the effect of this legislation, in particular how quickly company information is impounded in stock prices. According to his analyses, the speed of adjustment is increasing, which implies that the American stock markets have become more efficient in terms of information. At the same time, however, analysts’ company earnings forecasts have become more pessimistic. Zolotoy concludes that analysts have become more cautious in interpreting the information released by companies.
On a more general level, Zolotoy believes that the speed with which share prices respond to new information is strongly related to both the timing of information disclosure and to legislation. Stock markets can be made more efficient via legislation such as the American Sarbanes-Oxley Act. Zolotoy also argues that the timing of bad-news disclosures by companies is gradually becoming less important, as evident in the gradual decline of the ‘Friday effect’, for example. Companies have tended to release bad news on a Friday rather than on any other day on the assumption that traders will not react to the news immediately due to the approaching weekend. However, Zolotoy’s research shows that the benefits of this strategy appear to have diminished strongly over time.
Leon Zolotoy (1977, Moscow, Russia) studied Economics and Business Administration at the Ben-Gurion University in Israel (MA summa cum laude). He began his PhD research in 2005 at the CentER for Economic Research at Tilburg University. Part of his research was carried out at the Leonard N. Stern School of Business at New York University. In September 2008, Zolotoy will take up the post of Assistant Professor / Senior Lecturer at the Melbourne Business School in Australia.
Corine Schouten | alfa
Microtechnology industry is hiring – positive developments of past years continue
09.04.2018 | IVAM Fachverband für Mikrotechnik
RWI/ISL-Container Throughput Index with minor decline on a high overall level
20.03.2018 | RWI – Leibniz-Institut für Wirtschaftsforschung
Researchers from Sweden's Chalmers University of Technology and the University of Gothenburg present a new method which can double the energy of a proton beam produced by laser-based particle accelerators. The breakthrough could lead to more compact, cheaper equipment that could be useful for many applications, including proton therapy.
Proton therapy involves firing a beam of accelerated protons at cancerous tumours, killing them through irradiation. But the equipment needed is so large and...
A new assessment of NASA's record of global temperatures revealed that the agency's estimate of Earth's long-term temperature rise in recent decades is accurate to within less than a tenth of a degree Fahrenheit, providing confidence that past and future research is correctly capturing rising surface temperatures.
The most complete assessment ever of statistical uncertainty within the GISS Surface Temperature Analysis (GISTEMP) data product shows that the annual values...
Physicists at the University of Basel are able to show for the first time how a single electron looks in an artificial atom. A newly developed method enables them to show the probability of an electron being present in a space. This allows improved control of electron spins, which could serve as the smallest information unit in a future quantum computer. The experiments were published in Physical Review Letters and the related theory in Physical Review B.
The spin of an electron is a promising candidate for use as the smallest information unit (qubit) of a quantum computer. Controlling and switching this spin or...
Engineers at the University of Tokyo continually pioneer new ways to improve battery technology. Professor Atsuo Yamada and his team recently developed a...
With a quantum coprocessor in the cloud, physicists from Innsbruck, Austria, open the door to the simulation of previously unsolvable problems in chemistry, materials research or high-energy physics. The research groups led by Rainer Blatt and Peter Zoller report in the journal Nature how they simulated particle physics phenomena on 20 quantum bits and how the quantum simulator self-verified the result for the first time.
Many scientists are currently working on investigating how quantum advantage can be exploited on hardware already available today. Three years ago, physicists...
29.04.2019 | Event News
17.04.2019 | Event News
15.04.2019 | Event News
27.05.2019 | Information Technology
27.05.2019 | Physics and Astronomy
27.05.2019 | Life Sciences