The Information Content of Earnings and Turnover Announcements in France

Posted: 14 Mar 2002

See all articles by Jean-Francois Gajewski

Jean-Francois Gajewski

University Savoie Mont-Blanc, IREGE

Bertrand P. Quere

University of Grenoble - Graduate School of Business

Abstract

Annual net income is seen by shareholders as the most important figure, since it is, for individual accounts, the basis of appropriation of profit by the shareholders' general meeting. However, firms publish interim figures at a higher frequency to allow investors to react quickly to frequently updated information that gives them a more accurate view of the evolution of the firm. In the United States, according to regulation S-X, the interim quarterly reports must disclose the net income. In France, firms must publish their quarterly turnovers and their half-year income statements in addition to their annual accounts. Whereas American publications are practically homogeneous in nature in terms of earnings disclosure, the information content of French quarterly reports differs from that of the half-year and annual accounts. Such French irregularities in information content mean that interim and annual announcements do not have the same value for the shareholders. Because of the heterogeneous nature and the time frame of the disclosed information, one may wonder if French market reactions to the announcements of interim publications exhibit significantly different characteristics from those observed for quarterly releases in other countries. This can only be appreciated through a differential analysis of French market response to interim and annual announcements.

JEL Classification: M40, M41, H22

Suggested Citation

Gajewski, Jean-Francois and Quere, Bertrand P., The Information Content of Earnings and Turnover Announcements in France. The European Accounting Review, Vol. 10, No.4, 2001. Available at SSRN: https://ssrn.com/abstract=293685

Jean-Francois Gajewski (Contact Author)

University Savoie Mont-Blanc, IREGE ( email )

4 Chemin de Bellevue
BP 80439
Annecy-le-Vieux, 74944
France
33 6 10 32 71 06 (Phone)
33 4 50 09 24 39 (Fax)

HOME PAGE: http://www.univ-savoie.fr/

Bertrand P. Quere

University of Grenoble - Graduate School of Business ( email )

Domaine Universitaire
38040 Grenoble
France

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