Find a public company that missed expected earnings

Reference no: EM133474318

Question: In this discussion, you are to find a public company that missed expected earnings (earnings per share) in the earnings announcement since December 2018 (see Wall Street Journal available in the library). You then need to identify how much the stock price changed in the 24-48 hours after the announcement (price before - price after).-- prices can be found on the internet. Then multiply the stock price change by the number of common shares (see the financial statements in the 10-k) to determine the total change in the value of the market capitalization of the firm. Share these details in the post. Also comment on whether you think how management of the firm you selected might be motivated to misreport earnings given the way the market operates when these announcements are made.

Keep in mind as you do this that the SEC considered it necessary to issue a Staff Accounting Bulletin about the materiality and in that bulletin noted that sometimes a penny can be material.

Also note that this assignment illustrates how a market is efficient. The market get unexpected news (firm does not make anticipated earnings) and reacts to it.

Reference no: EM133474318

Questions Cloud

Analyze the functions of management and ethical principles : Analyze the functions of management and ethical principles for executing effective decision making in organizations.

Examples of problematic areas include discretionary reserves : What are these differences? Examples of problematic areas include discretionary reserves, goodwill, deferred taxes, inventory valuation, segmental information

Define robbery and discuss each type of robber : Define robbery. Describe the five patterns robbery is said to follow. discusses four types of robbers. Discuss each type of robber.

What are professional communication skills : What are professional communication skills and why are they so important within the field of Human Services?

Find a public company that missed expected earnings : Do this that the SEC considered it necessary to issue a Staff Accounting Bulletin about the materiality and in that bulletin noted that sometimes a penny can be

How would you use theories to help you build relationships : How would you use these three theories to help you build stronger relationships with your current or future employees?

Do you think contribute most to acts of terrorism : In regards to terrorism, what issues do you think contribute the most to acts of terrorism that can be found around the world?

Patient sufficiently understands how to use drug properly : What kinds of questions should be asked by a health professional to ensure that a patient sufficiently understands how to use a drug properly and safely?

Explain low-dose attenuation correction ct-diagnostic ct : Explain the differences between low-dose attenuation correction CT and diagnostic CT?

User Account

All Pages