The market response to exploration, resource and reserve announcements by mining companies: Australian data

Abstract

This paper is the first to conduct an event study on the market response to exploration, resource and reserve announcements made by mining firms. Results from an event study using a matched firm approach that suggest that markets react positively to both the exploration and the resource announcements at the time of their release but find information value in the reserve announcements possibly because all of the information in these announcements have been anticipated by the market. In fact, there is evidence to suggest a high level of anticipation of all three types of announcements which should be a matter of concern for the regulators. The other major surprising finding in the study is that in every instance the market seems to have been overly enthusiastic about the announcements, as share prices turns down almost immediately afterwards and trends downward for an extended time. This leaves open the question as to why does the market get them so horribly wrong.

Accounting Research in Abacus, A&F, AAR, and AJM from 2008–2015: A Review and Research Agenda

“…The 2015 Paris Climate Treaty to limit temperature change to below 2°C will lead to renewed efforts for mitigation and adaptation to climate change and present many opportunities for natural experiments. Researchers can build on existing papers on Environmental Accounting, and on emerging research in the Global Environmental Change field, by studying topics such as those relating to the disclosure of environmental impacts and performance (Bachoo et al ., ; Cotter and Najah, ; de Villiers and van Staden, ; Griffin and Sun, ; Ji and Deegan, ; Kamal and Deegan, ; Loh et al ., ; Mock et al ., ); capital market effects (Bird et al ., ; Chapple et al ., ; Clarkson et al ., ; Herbohn et al ., ); and the role of accounting in supporting environmental change strategies (Hartmann et al ., ; Linnenluecke et al ., ; Tang and Luo, ).…”

The impact of sentiment on price discovery

“…Bird et al . () find that Australian mining firms have greater excess returns associated with announcement of discovering reserves during periods of low‐sentiment. While they do not make any claims regarding this, it is possible that managers try to strategically time their announcements around low‐sentiment periods to benefit most from their announcements.…”

Extractive Industries Reporting: A Review of Accounting Challenges and the Research Literature

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