The Research Review on PEAD and PFRD Share Price Drift Phenomenon
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The share price drift phenomenon is an important abnormality frequently occurred in the stock market. It is caused by some events that are related to share price or yield rate. In this thesis, the author summarized and systemized the research literatures of share price drift phenomenon from earnings announcement and forecast revision. Each topic could be divided into two parts. In the first part, the author studied whether share price drift phenomenon exists under the influences of events. The other part is the cause of share price drift phenomenon. In the process of systemizing the literatures, PEAD and PFRD can be found out, but the causes for these two phenomena may not be identical. PEDA is explained from the perspectives of asymmetric information and risk costs, while PFRD is elaborated from the perspectives of insufficient investor response and asymmetric information.
Earnings announcement, PEAD, Forecast revision, PFRD.