Earnings Announcement Disclosures and Changes in Analysts' Information

• 成果类型: Article
• 署名作者: Barron, Orie E.; Byard, Donal; Yu, Yong
• 署名单位: Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park; City University of New York (CUNY) System; Baruch College (CUNY); University of Texas System; University of Texas Austin
• 刊物名称: CONTEMPORARY ACCOUNTING RESEARCH
• ISSN/ISSBN: 0823-9150
• DOI: 10.1111/1911-3846.12275
• 发表日期: 2017
• 页码: 343-373
• 关键词: accrual estimation errors; sfas no. 131; CONFERENCE CALLS; recommendation revisions; voluntary disclosure; Fundamental analysis; Abnormal returns; SECURITY RETURNS; FUTURE EARNINGS; small firms

摘要

This study examines how financial disclosures with earnings announcements affect sell-side analysts' information about future earnings, focusing on disclosures of financial statements and management earnings forecasts. We find that disclosures of balance sheets and segment data are associated with an increase in the degree to which analysts' forecasts of upcoming quarterly earnings are based on private information. Further analyses show that balance sheet disclosures are associated with an increase in the precision of both analysts' common and private information, segment disclosures are associated with an increase in analysts' private information, and management earnings forecast disclosures are associated with an increase in analysts' common information. These results are consistent with analysts processing balance sheet and segment disclosures into new private information regarding near-term earnings. Additional analysis of conference calls shows that balance sheet, segment, and management earnings forecast disclosures are all associated with more discussion related to these items in the questions-and-answers section of conference calls, consistent with analysts playing an information interpretation role with respect to these disclosures.