Stock prices following earnings announcements have become more efficient. Prices on announcement dates incorporate more quickly earnings surprises, leading to the disappearance of post-announcement price drifts. Evidence suggests that trading frictions commonly associated with market...

Most corporate news occurs in the after-hours market, a very illiquid trading environment. We examine the relationship between liquidity and price discovery around after-hours earnings announcements. Prices reflect earnings surprises through changes in quotes rather than through trades....

We examine the speed and mechanism of the price discovery process following earnings announcements in the after-hours market, a very illiquid trading environment. Prices reflect earnings surprises mostly through changes in quotes rather than through trades. Following positive announcement...