L'impact informationnel de l'alerte aux résultats sur l'annonce du résultat annuel

François Aubert () and Waël Louhichi
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François Aubert: Service de radiologie - Centre hospitalier privé du Montgarde (CHP du Montgarde)
Waël Louhichi: CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique

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Abstract: This paper aims to study the impact of profit warnings on market reaction around annual earnings announcements. Relatively few works have investigated this issue. Our empirical survey based on an event study, points out strong negative stock returns as well as abnormally high trading volume around warnings of negative earnings surprises. Market reaction depends on the size of the firm, the P/E ratio and on its risk level. Moreover, we observe positive abnormal returns at the date of earnings announcements for companies having previously released a profit warning. Our results testify that both disclosures convey an informative content for investors. Those findings may arise from financial communication strategy. Managers are more likely to disclose voluntarily bad news (i.e., profit warnings for example) as early as possible and postpone good news disclosures for annual press conferences. This explains the negative market reaction around profit warnings and the positive market reaction around earnings announcements.

Keywords: profit warnings; earnings announcements; financial communication; abnormal returns; alertes aux résultats; annonce des résultats; communication financière; rentabilités anormales (search for similar items in EconPapers)
Date: 2011
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Published in Comptabilité Contrôle Audit / Accounting Auditing Control, 2011, 17 (2), pp.11-36

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-00631150

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