The Brand Value of Earnings: An Event Study of Consumer Responses to Earnings Announcements

• 成果类型: Article
• 署名作者: Kimbrough, Michael D.; Paharia, Neeru; Wang, Xu (Frank); Wei, Sijing
• 署名单位: University System of Maryland; University of Maryland College Park; Arizona State University; Arizona State University-Tempe; Saint Louis University; Creighton University
• 刊物名称: ACCOUNTING REVIEW
• ISSN/ISSBN: 0001-4826
• DOI: 10.2308/TAR-2022-0043
• 发表日期: 2024
• 页码: 259-285
• 关键词: measures leading indicators; financial performance; product quality; Social media; perceptions; FIRMS; price; INFORMATION; reputation; search

摘要

We provide evidence from the first short -window event study of consumers' perceptual responses to earnings announcements using daily consumer perception data. We document a positive association between the change in consumers' overall perceptions of a brand at the time of the earnings announcement and the earnings surprise-that is, a positive consumer earnings response coefficient (CERC). CERC is larger when there is greater traditional news or social media activity, indicating that news dissemination is an important channel for consumers to respond to earnings news. Moreover, CERC varies based on brand and consumer characteristics. Changes in consumer perceptions at the time of the earnings announcement are positively associated with changes in purchase consideration and intent and with changes in realized future sales growth. To maximize identification, we document a positive and statistically significant CERC in a controlled experiment. Our findings demonstrate the importance of earnings to an important stakeholder.