Post-earnings-announcement drift: PEAD in a modern setting and the predictive power of valuation multiples

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School of Business | Bachelor's thesis
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Date

2025

Department

Rahoituksen laitos

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Mcode

Degree programme

Rahoitus

Language

en

Pages

31

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Abstract

This thesis examines the post-earnings-announcement drift anomaly in Finland from 2013 to 2023, focusing on the potential influence of relative valuation metrics, particularly the EV/EBITDA ratio. The study consists of two parts: (1) an analysis of PEAD using data from 22 listed Finnish firms and (2) a regression analysis examining the relationship between EV/EBITDA and PEAD magnitude. The results reveal a significant PEAD in Finland when excluding COVID (Q4 2019 to Q4 2020). The regression analysis shows no significant link between EV/EBITDA ratios and PEAD, suggesting that other factors may be driving the effect.

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Thesis advisor

Kokkonen, Joni

Keywords

anomaly, post-earnings-announcement drift, valuation multiples, EV/EBITDA

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https://urn.fi/URN:NBN:fi:aalto-202505183740

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