Publication Type
Journal Article
Version
acceptedVersion
Publication Date
4-2010
Abstract
We examine the relationship between analyst research and corporate earnings announcements to explore the relative importance of information discovery versus interpretation of previously released information. Using equity market reaction to capture information content, we find that information discovery (interpretation) dominates in the week before (after) firms announce their earnings. In addition, we find that the interpretation role increases in importance with the difficulty of financial accounting information. Analysis of all weeks surrounding earnings announcements shows that the information discovery role is overall more important. We are able to reconcile this result with the opposite finding in Francis et al. (2002).
Keywords
Analyst research, Information content, Earnings announcements, Information discovery
Discipline
Accounting | Corporate Finance
Research Areas
Corporate Reporting and Disclosure
Publication
Journal of Accounting and Economics
Volume
49
Issue
3
First Page
206
Last Page
226
ISSN
0165-4101
Identifier
10.1016/j.jacceco.2009.12.004
Publisher
Elsevier
Citation
CHEN, Xia; CHENG, Qiang; and LO, Kin.
On the relationship between analyst reports and corporate disclosures: Exploring the roles of information discovery and interpretation. (2010). Journal of Accounting and Economics. 49, (3), 206-226.
Available at: https://ink.library.smu.edu.sg/soa_research/822
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.1016/j.jacceco.2009.12.004