A Growing Disparity in Earnings Disclosure Mechanisms: The Rise of Concurrently Released Earnings Announcements and 10-Ks

Journal of Accounting & Economics (JAE), Forthcoming

Kelley School of Business Research Paper No. 19-2

71 Pages Posted: 19 Dec 2018

See all articles by Salman Arif

Salman Arif

University of Minnesota - Twin Cities - Carlson School of Management

Nathan T. Marshall

University of Colorado at Boulder - Department of Accounting

Joseph H. Schroeder

Indiana University - Kelley School of Business - Department of Accounting

Teri Lombardi Yohn

Emory University Goizueta Business School

Multiple version iconThere are 2 versions of this paper

Date Written: November 29, 2018

Abstract

We document a growing disparity in earnings disclosure mechanisms. Firms are increasingly disclosing earnings announcements (EA) concurrently with the 10-K filing instead of first issuing a ‘stand-alone’ EA. Firm adoption of concurrent EA/10-Ks is associated with lower investor sophistication, greater impediments to producing timely and reliable earnings information, and greater industry-level concurrent reporting. Concurrent EA/10-Ks differ from stand-alone EAs in that investors anticipate more information in the EA, disclosures are preempted by industry peer EAs, the market reaction is muted even when controlling for EA timing, and post-earnings-announcement drift is greater.

Keywords: Earnings Announcements; Disclosure; SEC Filings; Information Content; Timeliness; Concurrent Information

Suggested Citation

Arif, Salman and Marshall, Nathan T. and Schroeder, Joseph H. and Yohn, Teri Lombardi, A Growing Disparity in Earnings Disclosure Mechanisms: The Rise of Concurrently Released Earnings Announcements and 10-Ks (November 29, 2018). Journal of Accounting & Economics (JAE), Forthcoming; Kelley School of Business Research Paper No. 19-2. Available at SSRN: https://ssrn.com/abstract=3293279

Salman Arif

University of Minnesota - Twin Cities - Carlson School of Management ( email )

19th Avenue South
Minneapolis, MN 55455
United States

HOME PAGE: http://https://carlsonschool.umn.edu/faculty/salman-arif

Nathan T. Marshall

University of Colorado at Boulder - Department of Accounting ( email )

419 UCB
Boulder, CO 80309-0419
United States

Joseph H. Schroeder (Contact Author)

Indiana University - Kelley School of Business - Department of Accounting ( email )

1309 E. 10th Street
Bloomington, IN 47405
United States

Teri Lombardi Yohn

Emory University Goizueta Business School ( email )

201 Dowman Drive
Atlanta, GA 30322
United States

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