Is all disaggregation good for investors? Evidence from earnings announcements
| العنوان: | Is all disaggregation good for investors? Evidence from earnings announcements |
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| المؤلفون: | Teri Lombardi Yohn, Nathan T. Marshall, Eric Holzman, Joseph H. Schroeder |
| المصدر: | Review of Accounting Studies. 26:520-558 |
| بيانات النشر: | Springer Science and Business Media LLC, 2021. |
| سنة النشر: | 2021 |
| مصطلحات موضوعية: | 050208 finance, Earnings, education, 05 social sciences, 050201 accounting, General Business, Management and Accounting, Market response, Corporate finance, Homogeneous, Accounting, 0502 economics and business, Econometrics, Economics, Price efficiency, health care economics and organizations, Public finance |
| الوصف: | Research suggests that greater earnings disaggregation in financial statements leads to favorable market outcomes. This perspective is based on a presumption that the disaggregation separates earnings components with heterogeneous characteristics. We hypothesize that the disaggregation of homogeneous earnings components is associated with greater investor disagreement and a less efficient market response to the earnings announcement. We estimate persistence regressions at the industry level and classify earnings components with persistence that differs significantly from the persistence of sales as heterogeneous and components with persistence that does not differ from the persistence of sales as homogeneous. Consistent with our hypothesis, we find a significant positive relation between the level of homogeneous earnings disaggregation and investor disagreement around earnings announcements. We also find significantly greater post-earnings announcement drift after earnings announcements with greater homogeneous earnings disaggregation. This evidence is consistent with homogeneous earnings disaggregation hindering investors’ ability to impound earnings information into price efficiently. |
| تدمد: | 1573-7136 1380-6653 |
| DOI: | 10.1007/s11142-020-09566-5 |
| URL الوصول: | https://explore.openaire.eu/search/publication?articleId=doi_________::fe11681d7d0767ad36febe9371dc3ca8 https://doi.org/10.1007/s11142-020-09566-5 |
| Rights: | CLOSED |
| رقم الانضمام: | edsair.doi...........fe11681d7d0767ad36febe9371dc3ca8 |
| قاعدة البيانات: | OpenAIRE |
| تدمد: | 15737136 13806653 |
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| DOI: | 10.1007/s11142-020-09566-5 |