Strategic Timing of Earnings Announcements?

31 Pages Posted: 10 Aug 2007

See all articles by Cameron Truong

Cameron Truong

Monash University; Financial Research Network (FIRN)

Multiple version iconThere are 2 versions of this paper

Date Written: May 2006

Abstract

In recent period, earnings announcement time is relatively invariable for a firm. There is evidence of strong preference to a certain time outside trading hours for earnings disclosure. Using firm specific regressions, I show that earnings response coefficient (ERCs) differ across firms. However, there is no evidence of differential ERCs to a certain earnings announcement time. By suddenly switching to a different announcement time from its preferred time, firms do not gain any softer market reaction. I compare research results from firm specific method and from pooled timeseries and cross-sectional method and demonstrate that they differ significantly due to large heterogeneity across firms. I suggest that researchers should adopt firm specific approach to avoid misleading results and to achieve improved estimations.

Keywords: Strategic, Earnings Announcements

Suggested Citation

Truong, Cameron, Strategic Timing of Earnings Announcements? (May 2006). Available at SSRN: https://ssrn.com/abstract=1005527 or http://dx.doi.org/10.2139/ssrn.1005527

Cameron Truong (Contact Author)

Monash University ( email )

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Wellington Road
Clayton, Victoria 3800
Australia

Financial Research Network (FIRN)

C/- University of Queensland Business School
St Lucia, 4071 Brisbane
Queensland
Australia

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