Around-the-Clock Media Coverage and the Timing of Earnings Announcements

Mark Bagnoli, Michael Clement and Susan G. Watts

Purdue University Economics Working Papers from Purdue University, Department of Economics

Abstract: We reexamine the descriptive ability of the conventional wisdom that earnings announcements made after trading and on Friday are dominated by bad news in light of the 24/7 media coverage and other technological changes of the 1990 s. We find that the change in media coverage has facilitated a significant change in earnings announcement times: only 27% of earnings announcements are now made during trading as opposed to 67% in prior research. However, our finding of continued dominance of bad news in Friday announcements in particular strongly suggests that the conventional wisdom is not solely the result of managers desire to take advantage of limited media coverage. Instead, managers appear to be taking advantage of other aspects of investors behavior, such as their anticipating negative Friday announcements earlier in the week, and the relatively quiet (in terms of trading) weekend period to manage stock price responses to their companies financial news.

Keywords: strategic planning; bad news; earnings announcements; earnings disclosures (search for similar items in EconPapers)
JEL-codes: G12 G14 M41 (search for similar items in EconPapers)
Pages: 37 pages
Date: 2005-12
New Economics Papers: this item is included in nep-fin and nep-fmk
References: Add references at CitEc
Citations: View citations in EconPapers (23)

Downloads: (external link)
https://business.purdue.edu/research/Working-papers-series/Year-2005/1184.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (https://business.purdue.edu/research/Working-papers-series/Year-2005/1184.pdf [301 Moved Permanently]--> https://business.purdue.edu/research/working-papers-series/Year-2005/1184.pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pur:prukra:1184

Access Statistics for this paper

More papers in Purdue University Economics Working Papers from Purdue University, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Business PHD ().