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Information Content and Timing of Earnings Announcements
Author(s) -
Chen Gongmeng,
Cheng Louis T. W.,
Gao Ning
Publication year - 2005
Publication title -
journal of business finance and accounting
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.282
H-Index - 77
eISSN - 1468-5957
pISSN - 0306-686X
DOI - 10.1111/j.0306-686x.2005.00588.x
Subject(s) - earnings , earnings surprise , commission , business , post earnings announcement drift , monetary economics , china , surprise , information asymmetry , accounting , earnings per share , economics , finance , psychology , political science , social psychology , law
The China Securities Regulatory Commission requires all listed firms to make earnings announcements by the end of April each year. This requirement creates a unique opportunity for us to evaluate the timing of earnings announcements in a four‐month cluster. Firms, which are willing to make early announcements, tend to surprise the market, as indicated by the higher volume and price reactions. Later announcements are more predictable, as indicated by the lower volume and price reactions. These results indicate that an information asymmetry exists between early and late earnings announcements in Mainland China.