Curbing Enthusiasm: Media Sentiment and the Disciplining Role of Quarterly Earnings Announcements

• 成果类型: Article
• 署名作者: Holzman, Eric R.; Miller, Brian P.; Twedt, Brady J.
• 署名单位: Indiana University System; Indiana University Bloomington; IU Kelley School of Business; Texas A&M University System; Texas A&M University College Station; Mays Business School
• 刊物名称: ACCOUNTING REVIEW
• ISSN/ISSBN: 0001-4826
• DOI: 10.2308/TAR-2020-0104
• 发表日期: 2023
• 页码: 315-345
• 关键词: SHORT-SELLERS; information-content; business press; management; voluntary; investors; coverage; RISK; volatility; forecasts

摘要

A longstanding literature suggests that earnings provide the market with relevant information about firm performance, but one often overlooked benefit is their role in disciplining market expectations. This study examines the role of earnings announcements in constraining potential mispricing associated with firm-specific media sentiment. We show that media sentiment-driven quarterly returns (orthogonal to risk factors and fundamental news) largely reverse when public earnings are released. Our results suggest that quarterly earnings announcements play an important role in reducing media sentiment-related mispricing.