|
|
|
|
||||
|
||||
Earnings Attribution and Information TransfersDavid S. KooUniversity of Georgia - J. M. Tull School of Accounting Juan (Julie) WuUniversity of Georgia P. Eric YeungCornell University - Samuel Curtis Johnson Graduate School of Management January 1, 2013 Abstract: Management frequently attributes earnings news to various economic events. Using textual analysis, we identify the economic factors underlying earnings news from press releases. We find that earnings news in management forecasts is attributed to a wide range of industry-wide shocks and firm-specific actions. As expected, earnings attributions significantly affect peer firms’ price reactions to the earnings news. Specifically, earnings news attributed to industry-wide trends or firm structural changes leads to positive information transfers but news attributed to firm competitive moves triggers negative information transfers. The strength of information transfers depends on firm-level rivalry within the industry, the nature of industry-level competition, and the credibility of earnings attributions.
Number of Pages in PDF File: 47 Keywords: Earnings Attributions, Information Transfers, Management Forecasts, Textual Analysis JEL Classification: G14, M41 working papers seriesDate posted: November 20, 2010 ; Last revised: January 16, 2013Suggested CitationContact Information
|
|
||||||||||||||||||
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
FAQ
Terms of Use
Privacy Policy
Copyright
This page was processed by apollo2 in 0.625 seconds
