What drives the increased informativeness of earnings announcements over time?

• 成果类型: Article
• 署名作者: Collins, Daniel W.; Li, Oliver Zhen; Xie, Hong
• 署名单位: University of Iowa; University of Arizona; Syracuse University
• 刊物名称: REVIEW OF ACCOUNTING STUDIES
• ISSN/ISSBN: 1380-6653
• DOI: 10.1007/s11142-007-9055-y
• 发表日期: 2009
• 页码: 1-30
• 关键词: pro forma earnings; trading volume; ACCOUNTING EARNINGS; price; coefficients; surprises; STREET; GAAP

摘要

Landsman and Maydew (J Acc Res 40:797-808, 2002) document that the information content of earnings announcements has increased over the past three decades, and Francis et al. (Acc Rev, 77:515-546, 2002) conclude that expanded concurrent disclosures in firms' earnings announcements, especially the inclusion of detailed income statements, explain this increase. We posit and find that the temporal increase in the intensity of the market's reaction to Street earnings offers a competing explanation for the Landsman and Maydew finding. We also find that expanded concurrent disclosure of GAAP-based information contributes to the temporal increase in the information content of earnings announcements. However, unlike Francis et al., we find that the temporal increase in concurrent balance sheet and cash flow statement information dominates concurrent income statement information once we control for Street earnings.