The Media and Mispricing: The Role of the Business Press in the Pricing of Accounting Information

• 成果类型: Article
• 署名作者: Drake, Michael S.; Guest, Nicholas M.; Twedt, Brady J.
• 署名单位: Brigham Young University; Massachusetts Institute of Technology (MIT); Indiana University System; Indiana University Bloomington
• 刊物名称: ACCOUNTING REVIEW
• ISSN/ISSBN: 0001-4826
• DOI: 10.2308/accr-50757
• 发表日期: 2014
• 页码: 1673-1701
• 关键词: fundamental analysis; investor sophistication; accruals; news; disclosure; earnings; analysts; attention; drift; cost

摘要

This study investigates the role of the business press in the pricing of accounting information. Using a comprehensive dataset of more than 111,000 earnings-related business press articles published from 2000 to 2010, we find that press coverage of the annual earnings announcement mitigates cash flow mispricing, but has a negligible effect on accrual mispricing. We provide evidence that this impact is driven primarily by the press disseminating the information more broadly, rather than by the creation of new content that helps investors understand the implications of accounting information. Our results suggest that the business press plays an important role in facilitating the market's ability to efficiently impound accounting information into stock prices and provide new insights into the role of the business press as an information intermediary in capital markets.