Common
Post–earnings-announcement drift
Phenomenon in economics and accounting
Post–earnings-announcement drift
In financial economics and accounting research, post–earnings-announcement drift or PEAD (also named the SUE effect) is the tendency for a stock's cumulative abnormal returns to drift in the direction of an earnings surprise for several weeks (even several months) following an earnings announcement. This phenomenon is one of the oldest and most persistent capital market anomalies, with evidence dating back to the late 1960s.
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