TY - JOUR
T1 - Earnings announcements and competing information
AU - Francis, Jennifer
AU - Schipper, Katherine
AU - Vincent, Linda
N1 - Funding Information:
This research was supported by the Fuqua School of Business, Duke University, the Kellogg Graduate School of Management, Northwestern University, and the KPMG Foundation. The views expressed in this paper are those of the authors. Official positions of the Financial Accounting Standards Board are arrived at only after extensive due process and deliberation. We thank Lin Peng and Terry Quan for excellent research assistance. We appreciate comments from an anonymous referee and from Jerry Zimmerman (editor); from workshop participants at George Washington University, University of Arkansas, University of Colorado, University of Michigan, University of New South Wales, University of Southern California, participants at the AAA 2000 meetings; and from Bill Baber, Qi Chen, Patricia Dechow, S.P. Kothari, Russell Lundholm, Karen Pincus, Phil Shane and K.R. Subramanyam.
PY - 2002
Y1 - 2002
N2 - We investigate whether competing information, primarily analyst reports, reduces the usefulness of earnings announcements. Inconsistent with the view that information in analyst reports substitutes for earnings announcements, we find a positive relation between absolute abnormal returns to the two types of disclosures. This positive relation also characterizes subsequent period analyst reports relative to current period earnings announcements. We also find that aggregate absolute reactions to both types of disclosures increased over 1986-1995. As a whole, these results provide little support for the view that the informativeness of earnings announcements is eroded by competing information in the form of analyst reports.
AB - We investigate whether competing information, primarily analyst reports, reduces the usefulness of earnings announcements. Inconsistent with the view that information in analyst reports substitutes for earnings announcements, we find a positive relation between absolute abnormal returns to the two types of disclosures. This positive relation also characterizes subsequent period analyst reports relative to current period earnings announcements. We also find that aggregate absolute reactions to both types of disclosures increased over 1986-1995. As a whole, these results provide little support for the view that the informativeness of earnings announcements is eroded by competing information in the form of analyst reports.
KW - Analyst report
KW - Capital market
KW - Earnings announcement
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U2 - 10.1016/S0165-4101(02)00058-7
DO - 10.1016/S0165-4101(02)00058-7
M3 - Article
AN - SCOPUS:0036331646
VL - 33
SP - 313
EP - 342
JO - Journal of Accounting and Economics
JF - Journal of Accounting and Economics
SN - 0165-4101
IS - 3
ER -