<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>In this study, the impact of financial reporting upon investment decision is assessed through investors' behavior and measured by the stock price variation. This research analyzes preliminary, semestrial, and quarterly financial reports from 24 BSE listed companies, namely companies within the BET XT index (14) and companies within the BET AeRO index (10), over the reporting periods between 2018 and 2022. The main finding shows that investors, instead of being influenced by the market general trend, reacted rationally in 47% of the cases as they assigned the highest importance to the fundamentals from the preliminary reports. Based on the results obtained from the two indicators introduced in the research, we concluded that between financial reporting and market sentiment, the factor with the highest level of influence on price variation was financial reporting.</p>
</abstract>

In this study, the impact of financial reporting upon investment decision is assessed through investors' behavior and measured by the stock price variation. This research analyzes preliminary, semestrial, and quarterly financial reports from 24 BSE listed companies, namely companies within the BET XT index (14) and companies within the BET AeRO index (10), over the reporting periods between 2018 and 2022. The main finding shows that investors, instead of being influenced by the market general trend, reacted rationally in 47% of the cases as they assigned the highest importance to the fundamentals from the preliminary reports. Based on the results obtained from the two indicators introduced in the research, we concluded that between financial reporting and market sentiment, the factor with the highest level of influence on price variation was financial reporting.

Investors' Reaction to Financial Reporting – Empirical Studies on Price Volatility on the Bucharest Stock Exchange

Faculty of Economics and Law, ED1 Department – Economic Sciences

University of Medicine, Pharmacy, Sciences and Technology “George Emil Palade” from Targu Mures

Acta Marisiensis. Seria Oeconomica

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

In this study, the impact of financial reporting upon investment decision is assessed through investors' behavior and measured by the stock price variation....

Investors' Reaction to Financial Reporting – Empirical Studies on Price Volatility on the Bucharest Stock Exchange

Pubblicato online: 19 gen 2024

Pagine: 47 - 55

DOI: https://doi.org/10.2478/amso-2023-0004

Parole chiave
financial reporting, stock price variation, rational behavior, stock index variation, market sentiment

© 2023 Ioan Ovidiu Spătăcean et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Investors' Reaction to Financial Reporting – Empirical Studies on Price Volatility on the Bucharest Stock Exchange

Pubblicato online: 19 gen 2024

Pagine: 47 - 55

DOI: https://doi.org/10.2478/amso-2023-0004

Parole chiavefinancial reporting, stock price variation, rational behavior, stock index variation, market sentiment

© 2023 Ioan Ovidiu Spătăcean et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Parole chiave
financial reporting, stock price variation, rational behavior, stock index variation, market sentiment