The Information in Management's Expected Earnings Report Date: A Day Late, a Penny Short

27 Pages Posted: 22 Sep 1999

See all articles by Mark Bagnoli

Mark Bagnoli

Purdue University

William Kross

State University of New York (SUNY) at Buffalo - Department of Accounting

Susan G. Watts

Purdue University

Date Written: July 1999

Abstract

Since 1995, managers of thousands of firms have voluntarily disclosed the expected date of their firm's next quarterly earnings announcement to Thomson Financial Services, Inc. These disclosures are 500 percent more accurate than the simple expectation that this year's announcement date will be identical to last year's. These disclosures are also informative. On average, managers who miss their own expected date eventually report earnings that fall about one penny per share below consensus forecasts for each day of the delay. Despite this, analysts do not revise their earnings forecasts for late announcements. However, market participants respond by sending the price of late-announcing stocks down by 0.4 percent around the missed expected announcement date.

JEL Classification: G14, M41, G29

Suggested Citation

Bagnoli, Mark E. and Kross, William and Watts, Susan G., The Information in Management's Expected Earnings Report Date: A Day Late, a Penny Short (July 1999). Available at SSRN: https://ssrn.com/abstract=177209 or http://dx.doi.org/10.2139/ssrn.177209

Mark E. Bagnoli

Purdue University ( email )

Department of Accounting
West Lafayette, IN 47907-1310
United States
765-494-4484 (Phone)
765-496-1778 (Fax)

William Kross

State University of New York (SUNY) at Buffalo - Department of Accounting ( email )

Buffalo, NY 14260
United States

Susan G. Watts (Contact Author)

Purdue University ( email )

Department of Accounting
West Lafayette, IN 47907-1310
United States
765-494-4504 (Phone)
765-496-1778 (Fax)

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