A growing disparity in earnings disclosure mechanisms: The rise of concurrently released earnings announcements and 10-Ks

Salman Arif, Nathan T. Marshall, Joseph H. Schroeder, Teri Lombardi Yohn

Research output: Contribution to journalArticlepeer-review

6 Scopus citations

Abstract

We document a growing disparity in earnings disclosure mechanisms. Firms are increasingly disclosing earnings announcements (EA) concurrently with the 10-K filing instead of first issuing a ‘stand-alone’ EA. Firm adoption of concurrent EA/10-Ks is associated with lower investor sophistication, greater impediments to producing timely and reliable earnings information, and greater industry-level concurrent reporting. Concurrent EA/10-Ks differ from stand-alone EAs in that investors anticipate more information in the EA, disclosures are preempted by industry peer EAs, the market reaction is muted even when controlling for EA timing, and post-earnings-announcement drift is greater.

Original languageEnglish (US)
Article number101221
JournalJournal of Accounting and Economics
Volume68
Issue number1
DOIs
StatePublished - Aug 2019
Externally publishedYes

Bibliographical note

Funding Information:
We appreciate helpful comments and suggestions from Wayne Guay (Editor), Jake Thornock (referee), Lori Bhaskar, Yadav Gopalan, Harold Kazanabon, Bill Kinney, Jing Pan, Eddie Riedl, Jonathan Rogers, and Sugata Roychowdhury, as well as workshop participants at Boston College, Colorado State University, Emory University, Indiana University, London School of Economics, Miami University, University of Florida, University of North Carolina Charlotte, University of Utah, University of Wisconsin at Milwaukee, the 2017 FARS Conference, the 2016 Conference on Financial Economics and Accounting (Toronto) and the 2016 Midwest Accounting Research Conference (Penn State).

Keywords

  • Concurrent information
  • Disclosure
  • Earnings announcements
  • Information content
  • SEC filings
  • Timeliness

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