Abstract
AbstractWe 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.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
