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 journalArticle

1 Citation (Scopus)

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

Fingerprint

Earnings announcements
Disclosure
Industry
Investor sophistication
Investors
Market reaction
Post-earnings announcement drift
Peers
Impediments

Keywords

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

Cite this

A growing disparity in earnings disclosure mechanisms : The rise of concurrently released earnings announcements and 10-Ks. / Arif, Salman; Marshall, Nathan T.; Schroeder, Joseph H.; Yohn, Teri Lombardi.

In: Journal of Accounting and Economics, Vol. 68, No. 1, 101221, 08.2019.

Research output: Contribution to journalArticle

@article{c0d129ada94c4c1ba9abd0f3dff8d647,
title = "A growing disparity in earnings disclosure mechanisms: The rise of concurrently released earnings announcements and 10-Ks",
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.",
keywords = "Concurrent information, Disclosure, Earnings announcements, Information content, SEC filings, Timeliness",
author = "Salman Arif and Marshall, {Nathan T.} and Schroeder, {Joseph H.} and Yohn, {Teri Lombardi}",
year = "2019",
month = "8",
doi = "10.1016/j.jacceco.2018.11.002",
language = "English (US)",
volume = "68",
journal = "Journal of Accounting and Economics",
issn = "0165-4101",
publisher = "Elsevier",
number = "1",

}

TY - JOUR

T1 - A growing disparity in earnings disclosure mechanisms

T2 - The rise of concurrently released earnings announcements and 10-Ks

AU - Arif, Salman

AU - Marshall, Nathan T.

AU - Schroeder, Joseph H.

AU - Yohn, Teri Lombardi

PY - 2019/8

Y1 - 2019/8

N2 - 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.

AB - 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.

KW - Concurrent information

KW - Disclosure

KW - Earnings announcements

KW - Information content

KW - SEC filings

KW - Timeliness

UR - http://www.scopus.com/inward/record.url?scp=85058802341&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=85058802341&partnerID=8YFLogxK

U2 - 10.1016/j.jacceco.2018.11.002

DO - 10.1016/j.jacceco.2018.11.002

M3 - Article

AN - SCOPUS:85058802341

VL - 68

JO - Journal of Accounting and Economics

JF - Journal of Accounting and Economics

SN - 0165-4101

IS - 1

M1 - 101221

ER -