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THE TIMELINESS OF HALF YEARLY EARNINGS ANNOUNCEMENTS AND STOCK RETURNS
Author(s) -
Sinclair Norman A.,
Young Joanna C. Y.
Publication year - 1991
Publication title -
accounting and finance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.645
H-Index - 49
eISSN - 1467-629X
pISSN - 0810-5391
DOI - 10.1111/j.1467-629x.1991.tb00162.x
Subject(s) - earnings , dividend , stock (firearms) , business , stock price , economics , monetary economics , finance , geography , paleontology , series (stratigraphy) , biology , archaeology
This paper examines the association between the timeliness of the half‐yearly report for Australian firms and the abnormal stock price behaviour around the time of the announcement. The results support the overseas evidence that reports containing ‘good’ news are released earlier than reports containing ‘bad’ news. The abnormal returns are consistent with the direction and magnitude of the earnings and dividend information. We find no evidence to support the Kross and Schroeder [1984] conclusion that timeliness per se is associated with abnormal returns once appropriate control is made for earnings/dividend information.