Announcing the Announcement
American Finance Association 2015 Boston Meetings Paper
57 Pages Posted: 13 Dec 2014 Last revised: 9 Jan 2018
Date Written: July 1, 2015
What drives investors’ attention? We study how far in advance earnings calendars are pre-announced and find that investors are more attentive to earnings news when such details are disclosed well ahead of time. This variation in investors' attention affects stock prices, thereby creating incentives for firms to strategically pre-announce the report date on short notice when the earnings news is bad. Hence, firms pre-announce their report dates well ahead of time when earnings are good and do it at the last moment when earnings are bad.
Keywords: Attention, Earnings Announcements
JEL Classification: M41, G14, L15
Suggested Citation: Suggested Citation