Not just for investors: The role of earnings announcements in guiding job seekers

Bong-Geun Choi, Jung Ho Choi and Sara Malik

Journal of Accounting and Economics, 2023, vol. 76, issue 1

Abstract: We study the information content of earnings announcements and its relevance for job search using detailed search data from half a million anonymous job seekers. We find evidence consistent with job seekers initiating job-search activity in response to a prospective employer's earnings announcements. Job seekers search more intensely for employers with media coverage and earnings growth, consistent with the attention and information roles of earnings announcements. We find corroborating evidence about the usefulness of earnings announcements' financial information content to job seekers: (1) a survey experiment indicates that job seekers are more willing to apply to firms when provided with evidence of positive performance; (2) job seekers search for financial information during applications and interviews; and (3) financial information is predictive of future job prospects, including job openings and career growth. Overall, our paper suggests that earnings announcements—among other sources—prompt and guide job seekers' search activities.

Keywords: Job Search; Job Prospects; Attention; Implicit Claims; Earnings Announcements; Financial Reporting; Recruitment (search for similar items in EconPapers)
JEL-codes: D83 J62 J64 M12 M21 M41 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jaecon:v:76:y:2023:i:1:s0165410123000125

DOI: 10.1016/j.jacceco.2023.101588

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