Abstract
We examine whether voluntary disclosure of earnings notifications mitigates the post-earnings-announcement drift (PEAD). An earnings notification, which is a firm’s voluntary announcement of the date of its earnings announcement (EA), increases investor attention to firms’ upcoming EAs and thus facilitates the incorporation of earnings news into stock prices. We find that firms with earnings notifications experience less PEAD and that the effect of earnings notifications on PEAD is greater for less visible firms. The results highlight the role of earnings notifications in improving price efficiency with respect to earnings news.
| Original language | English |
|---|---|
| Pages (from-to) | 473-499 |
| Number of pages | 27 |
| Journal | Asia-Pacific Journal of Financial Studies |
| Volume | 50 |
| Issue number | 5 |
| DOIs | |
| State | Published - 2021.10 |
Keywords
- Earnings announcements
- Earnings notifications
- Limited attention
- Post-earnings-announcement drift
- Visibility
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