UNEXPECTED QUARTERLY EARNINGS ANNOUNCEMENTS, FIRM SIZE, AND STOCK PRICE REACTION

This study exami nes the stock price react ion to theunexpected quarterly earnings announcements made by listed firmsin Pakistan using the data of 433 announcements made by 264 firmsfor a 2-year period from 2010 to 2011.Empirical results show that theunexpected quarterly earnings announcements do not have anysignificant price reaction in the Pakistani market. Positive andnegative abnormal returns are observed for firms making favorableand unfavorable earning announcements, respectively; but thesereturns are not statistically significant. Moreover, the study finds thatt he pri c e re act i on t o t he une x pe c t e d quart e rl y e arni ngsannouncement is not related to the size of the fir