Earnings announcements and competing information

Journal Article (Journal Article)

We investigate whether competing information, primarily analyst reports, reduces the usefulness of earnings announcements. Inconsistent with the view that information in analyst reports substitutes for earnings announcements, we find a positive relation between absolute abnormal returns to the two types of disclosures. This positive relation also characterizes subsequent period analyst reports relative to current period earnings announcements. We also find that aggregate absolute reactions to both types of disclosures increased over 1986-1995. As a whole, these results provide little support for the view that the informativeness of earnings announcements is eroded by competing information in the form of analyst reports. © 2002 Published by Elsevier Science B.V.

Full Text

Duke Authors

Cited Authors

  • Francis, J; Schipper, K; Vincent, L

Published Date

  • August 12, 2002

Published In

Volume / Issue

  • 33 / 3

Start / End Page

  • 313 - 342

International Standard Serial Number (ISSN)

  • 0165-4101

Digital Object Identifier (DOI)

  • 10.1016/S0165-4101(02)00058-7

Citation Source

  • Scopus