A1 Vertaisarvioitu alkuperäisartikkeli tieteellisessä lehdessä
Market use of disclosure components in interim reports
Tekijät: Kanto AJ, Schadewitz HJ
Kustantaja: PERGAMON-ELSEVIER SCIENCE LTD
Julkaisuvuosi: 2000
Journal: Omega
Tietokannassa oleva lehden nimi: OMEGA-INTERNATIONAL JOURNAL OF MANAGEMENT SCIENCE
Lehden akronyymi: OMEGA-INT J MANAGE S
Vuosikerta: 28
Numero: 4
Aloitussivu: 417
Lopetussivu: 431
Sivujen määrä: 15
ISSN: 0305-0483
DOI: https://doi.org/10.1016/S0305-0483(99)00071-7
Tiivistelmä
The degree of unexpected disclosure in interim reports affects the communication of earnings information to the market. This finding is built upon here by investigating whether individual components of disclosure, rather than the overall disclosure, are made use of. The data comprise information disclosed in interim reports submitted to the Helsinki Stock Exchange (HSE) in the period 1985-93. Four different disclosure components are investigated. The major finding is that reported earnings have an immediate effect after the event. In addition, there is a delayed response to earnings when the quality of the financial analysis is high. This shows that analytical disclosure enhances and reinforces the usefulness of the earnings information to the market. Specifically, when the financial analysis section of a report is comprehensive, it has, conjointly with earnings, a strong effect on returns for as long as 7 days after the event. (C) 2000 Elsevier Science Ltd. All rights reserved.
The degree of unexpected disclosure in interim reports affects the communication of earnings information to the market. This finding is built upon here by investigating whether individual components of disclosure, rather than the overall disclosure, are made use of. The data comprise information disclosed in interim reports submitted to the Helsinki Stock Exchange (HSE) in the period 1985-93. Four different disclosure components are investigated. The major finding is that reported earnings have an immediate effect after the event. In addition, there is a delayed response to earnings when the quality of the financial analysis is high. This shows that analytical disclosure enhances and reinforces the usefulness of the earnings information to the market. Specifically, when the financial analysis section of a report is comprehensive, it has, conjointly with earnings, a strong effect on returns for as long as 7 days after the event. (C) 2000 Elsevier Science Ltd. All rights reserved.
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