Expanded Disclosures and the Increased Usefulness of Earnings Announcements

By Jennifer Francis, Katherine Schipper, L. Vincent. 2002

362 citations recorded by the source corpus.

Subfields: Accounting, Finance

View Paper: https://www.semanticscholar.org/paper/a39e774bc7018571f555ed0389136caa0635f3ec

How researchers see this paper

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

In Accounting

1. Kenneth J. Merkley
2. John E. Core
3. Angela K. Davis
4. W. Guay
5. Andrew J. Leone
6. E. Henry
7. Jeremy Piger
8. Lisa M. Sedor

In Finance

1. Kenneth J. Merkley
2. John E. Core
3. Angela K. Davis
4. W. Guay
5. Andrew J. Leone
6. Lisa M. Sedor
7. Jeremy Piger
8. E. Henry

Citations in the corpus

• Trading Volume Around Earnings Announcements and Other Financial Reports: Theory, Research Design, Empirical Evidence, and Directions for Future Research (2010, positive): “First, earnings announcements contain more information with increasingly detailed disclosures (Francis et al. 2002; Barron et al. 2010).”
• Louis Working Paper Series Beyond the Numbers : An Analysis of Optimistic and Pessimistic Language in Earnings Press Releases (2006, background): “In a study of the increased informativeness of earnings announcements over time, Francis et al. (2002b) confirm an incremental market response to prospective officer quotations for their sample period (1980 – 1999).”
• Assessing Investor Response to Information Events Using Return and Volume Metrics (2002, background): “Several recent studies focus on detecting the existence or nonexistence of short-window investor response to accounting-related information including: research and development spending disclosures (Boone and Raman 2002); 8-K filings (Carter and Soo 1999); earnings announcements and information relea”
• Are Investors Influenced By How Earnings Press Releases Are Written? (2008, neutral): “…strategically selected benchmarks (e.g., Lougee & Marquardt, 2004; Schrand & Walther, 2000) and of prospective officer comments in earnings press releases (Francis et al., 2002; Hoskin et al., 1986), but little research has examined the influence of tone and other stylistic attributes on investors.”
• The Role of Newswires in Screening and Disseminating Value-Relevant Information in Periodic SEC Reports (2011, neutral): “As earnings press releases become increasingly preemptive (D’Souza et al. 2010a; see also Francis et al. 2002), swift identification of any market-relevant 1 The alerts we examine, which are identified using Factiva, are mostly recitation of specific facts already disclosed by companies in their…”
• Analyst Responsiveness and the Post-Earnings-Announcement Drift (2008, neutral): “11 This trend is perhaps due to an increasing trend of managers providing additional disclosures such as balance sheet information or holding conference calls along with earnings announcements (Francis et al., 2002; Kimbrough, 2005).”
• Market Reaction to Verbal Components of Earnings Press Releases: Event Study Using a Predictive Algorithm (2006, positive): “This explanation can also be applied to earnings announcements, and is supported by accounting research showing that disclosures made concurrently with earnings announcements, including officer comments, help explain market reaction (Francis et al. 2002; Hoskin et al. 1986).”
• Narrative Disclosure and Earnings Performance: Evidence from R&D Disclosures (2014, neutral): “2002), earnings announcements (Francis et al. 2002; D’Souza et al. 2010), and overall analyst disclosure ratings (Lang and Lundholm 1993).”