Is There News in the Club?

Posted: 9 Dec 1999

See all articles by Kenneth Yung

Kenneth Yung

Old Dominion University - Finance

Hamid Rahman

U.S. International University - College of Business Administration

Abstract

In September 1994, the Wall Street Journal started the Annual Report and Earning Service. Firms participating in this service volunteer to provide on request, to any reader, their annual report and current quarterly information. The daily price quotations of such firms appear with a small symbol like the club in playing cards. We examine the utility of voluntarily disclosing this second-hand information to the public and seek to find the motivation for this disclosure. Our results show that most of the firms that joined this service had below-industry-average performance, or at least were headed in that direction. Membership in the Annual Report and Earning Service brought some short-term benefits in the form of average excess returns, but the economic fundamentals reasserted, and most firms had significant below-average returns at the end of our sample period.

JEL Classification: G12, G14

Suggested Citation

Yung, Kenneth and Rahman, Hamid, Is There News in the Club?. The Journal of Financial Research. Available at SSRN: https://ssrn.com/abstract=187433

Kenneth Yung (Contact Author)

Old Dominion University - Finance ( email )

School of Business and Public Administration
Norfolk, VA 23529-0222
United States
757-683-3573 (Phone)

Hamid Rahman

U.S. International University - College of Business Administration ( email )

10455 Pomerado Road
San Diego, CA 92131-1799
United States

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