How Much New Information is There in Earnings

By Ray Ball, L. Shivakumar. 2008

349 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/7a58ddb3cb372a3bef4368350b0eb02b5411a459

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

In Finance

Citations in the corpus

Accounting Informs Investors and Earnings Management is Rife: Two Questionable Beliefs (2013, neutral): “…not timely, the subsequent literature employed short-window event studies to suggest the opposite.2 These studies certainly demonstrate some surprise content of earnings when released, but their use of a short-window benchmark tends to exaggerate its relative magnitude (Ball and Shivakumar, 2008).”
The debt market relevance of management earnings forecasts: evidence from before and during the credit crisis (2011, neutral): “On the other hand, Ball and Shivakumar (2008) and Beyer, Cohen, Lys and Walther (2009) document that management forecasts are more informative for stock markets than earnings announcements.”
Trading Volume Around Earnings Announcements and Other Financial Reports: Theory, Research Design, Empirical Evidence, and Directions for Future Research (2010, neutral): “Similarly, Battalio and Mendenhall (2005) compare small versus large traders’ reactions to Nasdaq firms’ earnings announcements, using a measure of excess net buying to infer the direction of the trade (i.e., whether it was spurred by a buy or a sell).”
What Do Management Earnings Forecasts Convey About the Macroeconomy (2013, positive): “Consistent with recent firm-level evidence (Ball and Shivakumar (2008), Beyer et al. (2010), and Milian (2010)), guidance surprise appears to convey more information to broader equity prices than earnings surprise.”
Who Uses Financial Reports and for What Purpose? Evidence from Capital Providers (2014, neutral): “Ball and Shivakumar (2008) argue that earnings provide little new information to stock markets and have more of a ‘disciplining’ or verification role of confirming prior information.”
The impact of corporate governance mechanisms on real and accrual earnings management practices: evidence from Jordan (2019, background): “(2010) finding larger boards effective in constraining EM, but others, including Rahman and Ali (2006) and Ball and Shivakumar (2008), concluding the reverse. In the REM literature, Kang and Kim (2012) provide evidence that REM decreases as board size increases, whilst Talbi et al.”
Management Earnings Forecasts and Other Forward-Looking Statements (2017, neutral): “…Van Buskirk (2013) use First Call’s CIG database and find that only 18% of earnings announcements are accompanied by earnings forecasts of any type of the 1995- 2007 period, while Ball and Shivakumar (2008) report that less than 10% of non-earnings periods from 1994-2006 include earnings forecasts.”
Challenges and opportunities in disclosure research—A discussion of 'the financial reporting environment: Review of the recent literature' $ (2011, methodology): “Using industry concentration measures constructed with Compustat data, Bamber and Cheon (1998) find that management earnings forecasts are less likely in more concentrated industries.”
Econometrics of the Basu Asymmetric Timeliness Coefficient and Accounting Conservatism (2013, neutral): “3 Basu (2005, Section 2), Ball, Kothari, and Robin (2000, fn. 15) and Ball and Shivakumar (2005, 2008).”
Investor Information Demand: Evidence from Google Searches Around Earnings Announcements (2012, neutral): “Ball and Shivakumar [2008] make a similar point regarding returns around earnings announcements.”