The Timing of Corporate Earnings Announcements

Document Type : Research Paper

Authors

Abstract

Beginning  with Patell and Wolfson (1982), several papers have documented that earnings announcements made on weeks’ last day tend to contain worse earnings news than those made at other week days. One hypothesis is that opportunistic managers release earnings at times of decreased media attention to hide their bad news and reduce the associated market penalty.
Using firm-level tests that focus on those firms that switch their disclosure timing to weeks’ last day (rather than reporting at other week days), we find no evidence that managers in Tehran Stock Exchange opportunistically report worse news on weeks’ last day, using data from 4000 disclosure timing in 2001 to 2009. We, then, examined other determinants of timing decision (including percentage of free and floating stocks, complexity and size of firm and industry membership as explanatory variables for timing decision), using a logistic regression model. The results showed that only the percentage of free and floating stocks have effects on timig decision.

Keywords

References

- اعتمادی، حسین و یار محمدی، اکرم. (1382). بررسی عوامل موثر بر گزارشگری میان دوره ای به موقع در شرکت‌های پذیرفته شده در بورس اوراق بهادار تهران. مجله علوم اجتماعی و انسانی دانشگاه شیراز (ویژه نامه حسابداری). دوره 19، ش 2، ‌ص 2-13.
- قائمی، محمد حسین، بیات، علی و اسکندرلی، طاهر. (1390). بررسی عوامل موثر بر محتوای اطلاعاتی سود‌های فصلی. بررسیهای حسابداری و حسابرسی. دوره 18، ش 65، ص 115-130.
- قائمی، محمدحسین، رحیم پور، محمد، نوذری، روح اله و روحی، بهزاد. (1389). اعلان‌ سودهای فصلی و عدم تقارن اطلاعاتی. پیشرفت‌های حسابداری. س 2، ش 2، ص 145-158.
– ودیعی، محمد حسین و شکوهی زاده، محمود. (1391). بررسی معیارهای مالی موثر بر تصمیم گیری سرمایه‌گذاران در بورس اوراق بهادار تهران". دانش حسابداری. س 3، ش 8.، ص 151-171.
-    Ajinkya, B., Bhojraj, S. and Sengupta, P. (2005). The association between outside directors, institutional investors and the properties of management earnings forecasts. Journal of Accounting Research. Vol. 43, No. 3, pp. 343-376.
-    Ansah, S.O. (2000). Timeliness of corporate financial reporting in emerging capital markets: emperical evidence from the Zimbabwe Stock Exchange. Accounting and Business Research. Vol. 30. No. 3, pp. 241-254.
-    Bagnoli, M., Kross, W. and Watts, S. (2002). The information in management’s expected earnings report date: A day late, a penny short. Journal of Accounting Research, Vol. 40, pp. 1275-96.
-    Bagnoli, M., Clement, M. and Watts, S. (2005). Around the clock media coverage and the timing of earnings announcements. Institute of Research in the Behavorial. Ecoomics and Management Sciences. No 1184.
-    Begley, J., and Fischer, P. (1998). Is there information in an earnings announcement delay?. Review of Accounting Studies. Vol. 3, pp. 347-63.
-    Bowen, R.M., Johnson, M.F., Shewlin, T., Veshores, D. (1992). Determinants of timing of quarterly earnings announcements. Journal of Accounting, Auditing and Finance. Vol. 7, No. 4, pp. 395-422.
-    Chambers, A. and Penman, S. (1984). Timeliness of reporting and the stock price reaction to earnings announcements. Journal of Accounting Research. Vol. 22, pp. 21-47.
-    Damodaran, A. (1989). The weekend effect in information releases: A study of earnings and dividend announcements. Review of Financial Studies. Vol. 4, pp. 607-623.   
-    DellaVigna, S., and Pollet, J. (2009). Investor inattention and Friday earnings announcements. Journal of Finance, Vol. 64, pp. 709-749.
-    Gennotte G, and Trueman, B. (1996). The strategic timing of corporate disclosures. Reveiw Finance Study, Vol. 9, pp. 665–690
-    Givoly, D. and Palmon, D. (1982). Timeliness of annual earnings announcements: Some empirical evidence. The Accounting Review. Vol. 57, pp. 486-508.
-    Doyle, J.T. and Magilke, M. (2009). The timing of earnings announcements: An examination of the strategic disclosure hypothesis. Accounting Review. Vol. 84, No. 1, pp. 157-182.
-    Kross, W., and Schroeder, D. (1984). An empirical investigation of the effect of quarterly earnings announcement timing on stock returns. Journal of Accounting Research, Vol. 22, pp. 153-176.
-    Lawrence, E.C. (1983). Reporting delays for failed firms. Journal of Accounting Research, Vol. 21. No. 2, pp. 606-610.
-    Patell, J.M., and Wolfson, M. (1982). Good news, bad news, and the intraday timing of corporate disclosures. Accounting Review. Vol. 57:509–527.
-    Penman, S. (1987). The distribution of earnings news over time and seasonalities in aggregate stock returns. Journal of Financial Economics. Vol. 18, No. 2, pp. 199-228.
-    Qi Sun. (2006). The timing of earnings announcements and market response to earnings news. Working Paper, College of Business Administration. California State University San Marcos.
-    Shleifer , A., and Vishny, R. (1986). Large shareholders and corporate control. The Journal of Economy. Vol. 94, No. 3, pp. 461-488.
-    Vigna, S.D. and Joshua, P. (2004). “Strategic release of information on friday: Evidence from earnings announcements”. Working Paper.
Journal of Accounting Knowledge
Volume 3, Issue 11 - Serial Number 11
February 2013
Pages 85-104

Files

History

  • Receive Date: 26 February 2013
  • Accept Date: 26 February 2013

Share

How to cite

Statistics