search query: @indexterm FINANCIAL ACCOUNTING / total: 306
reference: 6 / 306
| Author: | Chen, X. Cheng, Q. Lo, K. |
| Title: | On the relationship between analyst reports and corporate disclosures: Exploring the roles of information discovery and interpretation |
| Journal: | Journal of Accounting & Economics
2010 : APR, VOL. 49:3, p. 206-226 |
| Index terms: | information earnings stock markets financial accounting perception |
| Language: | eng |
| Abstract: | This paper investigates the relationship between analyst research and corporate earnings announcements to explore the relative importance of information discovery vs. interpretation of previously released information. Equity market reaction is used to capture information content, and information discovery (interpretation) is found to dominate in the week before (after) firms announce their earnings. Additionally, this paper finds that the interpretation role increases in importance with the difficulty of financial accounting information. Information discovery role is shown overall more important by the analysis of all weeks surrounding earnings announcements. This result is able to be reconciled with the opposite findings in Francis et al. (2002). |
SCIMA