Strategic timing of earnings announcements? |
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Authors: | Cameron Truong |
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Institution: | Department of Accounting and Finance, Monash University, Clayton, Vic. 3800, Australia |
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Abstract: | Using firm‐specific regressions, I show that earnings response coefficient differ across firms. However, there is no evidence of differential earnings response coefficient to a certain earnings announcement time. By switching to a different announcement time from its preferred time, a firm does not gain a softer market reaction. I compare research results from a firm‐specific method and from a pooled time‐series and cross‐sectional method and demonstrate that they differ significantly due to large heterogeneity across firms. I suggest that researchers should adopt a firm‐specific approach to avoid misleading results and to achieve improved estimations. |
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Keywords: | Dividend imputation Derivatives Put‐call parity M40 G14 |
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