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What is HFTs and Price Informativeness in Earnings about?

This study examines the role of high-frequency traders (HFTs) in the assimilation of earnings information into stock prices during earnings announcements. It finds that HFTs enhance price informativeness by increasing earnings response coefficients and reducing price impact, particularly when they trade in longer time windows following announcements. The evidence suggests that HFTs contribute positively to market efficiency by acting as liquidity suppliers and aiding financial analysts in updating forecasts

Author

belindajoan

Language

EN