Earnings announcements and competing information

Jennifer Francis*, Katherine Schipper, Linda Vincent

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

101 Scopus citations

Abstract

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.

Original languageEnglish (US)
Pages (from-to)313-342
Number of pages30
JournalJournal of Accounting and Economics
Volume33
Issue number3
DOIs
StatePublished - 2002

Keywords

  • Analyst report
  • Capital market
  • Earnings announcement

ASJC Scopus subject areas

  • Accounting
  • Finance
  • Economics and Econometrics

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