Home About us Contact
|
Home About us Contact | ||
|
|
||
Earnings News (earning + news)
Selected AbstractsVoluntary Disclosure of Good and Bad Earnings News in a Low Litigation Setting,ACCOUNTING PERSPECTIVES, Issue 4 2008Philip T. Sinnadurai ABSTRACT This study uses a historical setting in which expected litigation costs were low (i.e., Australia, from 1993 to 1996) to investigate whether companies with good news were more likely to preempt annual earnings than their counterparts with bad news. Empirical tests compare the probability of preemption conditional on having good news with the probability of preemption conditional on having bad news. The models control for other potential determinants of disclosure policy that have been documented in the literature. The results do not support the research hypothesis that companies with good news were more likely to preempt annual earnings than companies with bad news. This finding suggests that there may be other factors driving disclosure of bad news, in addition to those acknowledged in the extant literature. The evidence also indicates that in Australia during the investigation period, the probability of preemption was positively associated with firm size and analyst following and differed as a function of industry membership. [source] Driven to Distraction: Extraneous Events and Underreaction to Earnings NewsTHE JOURNAL OF FINANCE, Issue 5 2009DAVID HIRSHLEIFER ABSTRACT Recent studies propose that limited investor attention causes market underreactions. This paper directly tests this explanation by measuring the information load faced by investors. The,investor distraction hypothesis,holds that extraneous news inhibits market reactions to relevant news. We find that the immediate price and volume reaction to a firm's earnings surprise is much weaker, and post-announcement drift much stronger, when a greater number of same-day earnings announcements are made by other firms. We evaluate the economic importance of distraction effects through a trading strategy, which yields substantial alphas. Industry-unrelated news and large earnings surprises have a stronger distracting effect. [source] Impact of earnings performance on price-sensitive disclosures under the Australian continuous disclosure regimeACCOUNTING & FINANCE, Issue 2 2009Grace Chia-Man Hsu M40; M48 Abstract This study examines the relation between accounting earnings and the frequency of price-sensitive corporate disclosure under Australia's statutory continuous disclosure requirements. Despite low litigation threats and excepting loss-making firms, results show that firms with earnings declines (bad news) are more likely to make continuous disclosure than firms with earnings increases (good news). This suggests that market forces and regulators' scrutiny are sufficient to induce a ,bad news' disclosure bias. This study also examines the ,materiality' requirement under the continuous disclosure requirements and finds a positive relation between disclosure frequency and the magnitude of earnings news. The earnings,return correlation is positively associated with disclosure frequency for the financial services industry. [source] The post,announcement performance of dividend,changing companies: The dividend,signalling hypothesis revisitedACCOUNTING & FINANCE, Issue 2 2002Abeyratna Gunasekarage This study revisits the dividend,signalling hypothesis by examining the post,announcement performance of U.K. companies which disclose dividend and earnings news to the capital market on the same day. For this purpose, we first analyse market,adjusted excess returns for three periods around the announcement and then examine the financial performance in the year of the announcement and in the subsequent five,year period. The near announcement excess returns and the announcement,year financial profiles provide strong evidence in support of the dividend,signalling hypothesis. However, in contrast to the predictions of the hypothesis, the longer,term results suggest that the companies which announce a reduction in both dividends and earnings (bad news companies) outperform their dividend,increasing counterparts. [source] Securities Regulation, the Timing of Annual Report Release, and Market Implications: Evidence from ChinaJOURNAL OF INTERNATIONAL FINANCIAL MANAGEMENT & ACCOUNTING, Issue 2 2006In-Mu Haw Using a sample of earnings announcements of Chinese firms in the fiscal years 1994,1999, covering the periods before and after the introduction of a regulation to stagger the release of annual reports, we reassess the relation between earnings news and the timing of earnings announcements. We find that even though the reporting lag has significantly shortened as a result of the regulation, the pattern whereby good news is announced earlier than bad news persists. We then examine the behavior of stock prices before earnings announcements and find some indication of information leakage. These findings suggest that the regulation had the expected effect of reducing reporting delay and earnings release clustering. Yet, it did not appear to reduce the extent of the pre-announcement leakage of information. [source] | ||||||||||