Please use this identifier to cite or link to this item: http://scholarbank.nus.edu.sg/handle/10635/136099
Title: EXTRACTING CONSUMER DEMAND: CREDIT CARD SPENDING AND POST-EARNINGS RETURNS
Authors: ZOU XIN
Keywords: return predictability, earnings announcement, post-earnings returns, customer demand, credit cards, consumption
Issue Date: 3-Mar-2017
Source: ZOU XIN (2017-03-03). EXTRACTING CONSUMER DEMAND: CREDIT CARD SPENDING AND POST-EARNINGS RETURNS. ScholarBank@NUS Repository.
Abstract: Using transaction-level credit card spending data from a large financial institution, this paper examines the return predictability implications of customer spending. After controlling for the quarterly earnings and sales surprises, one inter-quintile increase in the adjusted customer spending during a firm’s fiscal quarter leads to more than one percentage point increase in the 60-day post-earnings-announcement CAR. The predictive power arises from the information content in spending that captures sustainable customer demand: the effect is stronger in firms with more sales from high-spending-capacity consumers and with a more diversified consumer base, and adjusted customer spending is able to predict future firm earnings and sales surprises. Further analysis using public customer segment data for non consumer oriented firms corroborate our findings based on the proprietary spending data. Overall, our findings suggest that disaggregated spending patterns provide accurate and persistent signals of customer demand relevant to a firm’s growth potential and stock pricing.
URI: http://scholarbank.nus.edu.sg/handle/10635/136099
Appears in Collections:Ph.D Theses (Open)

Show full item record
Files in This Item:
File Description SizeFormatAccess SettingsVersion 
ZOUX.pdf1.87 MBAdobe PDF

OPEN

NoneView/Download

Page view(s)

33
checked on Jan 14, 2018

Download(s)

37
checked on Jan 14, 2018

Google ScholarTM

Check


Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.