Business, Management and Accounting
4 years ago

Earnings surprises drive companies to announce after hours, impacting market reactions.

Asian Journal of Accounting Research
Does earnings surprise determine the timing of the earnings announcement? Evidence from earnings announcements of Indian companies
Krishna Prasad, Nandan Prabhu

Paper Summary

Related papers

Business, Management and Accounting
4 years ago

Stocks with smooth earnings growth may lead to future negative surprises.

Earnings Management
Asset Pricing
Financial Management
1 view
Economics, Econometrics and Finance
5 years ago

Earnings surprises drive market reactions in Iran, impacting investor decisions.

Asset Pricing
Earnings Management
Risk Management
2 views
Business, Management and Accounting
6 years ago

Earnings persistence reshapes stock market valuation, signaling changing investment landscape.

Earnings Management
Asset Pricing
Value-based Management
2 views

The study looked at how surprising earnings affect when companies announce their financial results. They analyzed 12 quarterly earnings announcements from 30 Indian companies to see if there was a difference in market response based on when the announcements were made. The researchers found that the market reacted negatively to earnings announcements made after trading hours. They also discovered that companies with significant earnings surprises were more likely to announce their results after trading hours to reduce market overreactions and underreactions. This study sheds light on how the timing of earnings announcements can impact market responses and how earnings surprises influence companies' decisions on when to announce their financial results.