The Information in Management's Expected Earnings Report Date: A Day Late, a Penny Short
27 Pages Posted: 22 Sep 1999
Date Written: July 1999
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: Suggested Citation