Concurrent Earnings Announcements and Analysts' Information Production

• 成果类型: Article
• 署名作者: Driskill, Matthew; Kirk, Marcus P.; Tucker, Jennifer Wu
• 署名单位: California State University System; California State University Fullerton; State University System of Florida; University of Florida
• 刊物名称: ACCOUNTING REVIEW
• ISSN/ISSBN: 0001-4826
• DOI: 10.2308/accr-52489
• 发表日期: 2020
• 页码: 165-189
• 关键词: limited attention; investor inattention; FORECAST ACCURACY; underreaction; performance; complexity; allocation; ECONOMICS; IMPACT

摘要

We examine whether financial analysts are subject to limited attention. We find that when analysts have another firm in their coverage portfolio announcing earnings on the same day as the sample firm (a concurrent announcement''), they are less likely to issue timely earnings forecasts for the sample firm's subsequent quarter than analysts without a concurrent announcement. Among the analysts who issue timely earnings forecasts, the thoroughness of their work decreases as their number of concurrent announcements increases. In addition, analysts are more sluggish in providing stock recommendations and less likely to ask questions in earnings conference calls as their number of concurrent announcements increases. Moreover, when analysts face concurrent announcements, they tend to allocate their limited attention to firms that already have rich information environments, leaving behind firms in need of attention. Overall, our evidence suggests that even financial analysts, who serve as information specialists, are subject to limited attention.