Earnings and Dividend Announcements: Is There a Corroboration Effect?

Information asymmetry surrounding earnings and dividend announcements: An intra-day analysis

This paper uses high frequency data to evaluate whether information asymmetry in the market is reduced as a result of corporate earnings and dividend announcements. Changes in the level of information asymmetry due to the announcements are proxied by the rate of change in trading volume, bid-ask spread, cumulative abnormal returns, and order imbalance. Our results show support for an informatio...

Price Effects of Relative Reporting Delay of Same-day Earnings and Dividend Announcements

This study focuses on the intraday relative timing of same day announcements of earnings and dividends. The price effects of three timing patterns are examined: (a) both earnings and dividends announced after the close of trading, (b) dividends announced before and earnings announced after the close of trading, and (c) earnings announced before and dividends announced after the close of trading...

Earnings Announcements and Systematic Risk

Firms scheduled to report earnings earn an annualized abnormal return of 9.9%. We propose a risk-based explanation for this phenomenon, in which investors use announcements to revise their expectations for non-announcing …rms, but can only do so imperfectly. Consequently, the covariance between …rm-speci…c and market cash-‡ow news spikes around announcements, making announcers especially risky....

Earnings Announcements and Competing Information

We investigate whether competing information, primarily analyst reports, reduces the usefulness of earnings announcements. Our examination of this issue has two parts. First, we examine whether investors’ use of analyst reports, as measured by the absolute abnormal returns to these reports, substitutes for their use of earnings announcements. We find that market reactions to earnings announceme...

How dividend announcements affect stock prices