Friday Earnings Announcement Effect in the Finnish Stock Market

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School of Business | Bachelor's thesis
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Date

2024

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Mcode

Degree programme

Rahoitus

Language

fi

Pages

17 + 7

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Abstract

This study explores whether investor attention affects stock returns in the Finnish stock market. I examine how the stock market reacts to earnings announcements, particularly on Fridays, when investor attention tends to be lower. If investor attention impacts stock prices, I expect to see a lesser immediate reaction and a greater delayed response to Friday announcements. However, my analysis of Finnish stock market data shows that Friday earnings surprises do not result in reduced immediate market reactions. Surprisingly, I find that initial responses are higher and delayed responses are lower for Friday announcements, which contradicts previous findings. These findings do not support the hypothesis that investors would be more inattentive on Fridays.

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Thesis advisor

Kokkonen, Joni

Keywords

behavioral finance, earnings announcements, post-earnings announcement drift, Finland, Friday

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