In this study,we find that relative to firms with less media coverage,stock price sensitivity to positive(negative)earnings surprises in earnings announcements of firms with greater media coverage is stronger(weaker)....In this study,we find that relative to firms with less media coverage,stock price sensitivity to positive(negative)earnings surprises in earnings announcements of firms with greater media coverage is stronger(weaker).This asymmetry in the effect of media coverage on stock price sensitivity to positive versus negative earnings surprises suggests that greater media coverage of earnings announcements intensifies stock price reactions to positive earnings surprises but attenuates reactions to negative earnings surprises.Moreover,we find that negative earnings news is less persistent for firms with greater media coverage.Overall,our findings support the conjecture that greater media coverage increases managers’incentive to avoid future negative news,thereby reducing the persistence of poor financial performance and weakening price reactions to negative earnings news.展开更多
This paper analyzes the annual reports(from 1997 to 2011)of firms listed on two stock exchanges in China and reveals four significant characteristics of disclosure timing.These characteristics have significant economi...This paper analyzes the annual reports(from 1997 to 2011)of firms listed on two stock exchanges in China and reveals four significant characteristics of disclosure timing.These characteristics have significant economic implications for stock market movement,including positive contributions to stock price,trading volume and abnormal return.It thereby demonstrates that the CSRC’s"balanced disclosure"policy has not been working as expected and needs further review and improvement.展开更多
文摘In this study,we find that relative to firms with less media coverage,stock price sensitivity to positive(negative)earnings surprises in earnings announcements of firms with greater media coverage is stronger(weaker).This asymmetry in the effect of media coverage on stock price sensitivity to positive versus negative earnings surprises suggests that greater media coverage of earnings announcements intensifies stock price reactions to positive earnings surprises but attenuates reactions to negative earnings surprises.Moreover,we find that negative earnings news is less persistent for firms with greater media coverage.Overall,our findings support the conjecture that greater media coverage increases managers’incentive to avoid future negative news,thereby reducing the persistence of poor financial performance and weakening price reactions to negative earnings news.
文摘This paper analyzes the annual reports(from 1997 to 2011)of firms listed on two stock exchanges in China and reveals four significant characteristics of disclosure timing.These characteristics have significant economic implications for stock market movement,including positive contributions to stock price,trading volume and abnormal return.It thereby demonstrates that the CSRC’s"balanced disclosure"policy has not been working as expected and needs further review and improvement.
