Download or read book Disclosure of Cash Flow Information in Earnings Announcements written by Bin Miao and published by . This book was released on 2013 with total page 33 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book A Further Examination of the Incremental Information Content of Cash flow Announcements written by John Douglas Hanna and published by Ann Arbor, Mich. : University Microfilms International. This book was released on 1991 with total page 268 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book What Drives the Increased Informativeness of Earnings Announcements Over Time written by Daniel W. Collins and published by . This book was released on 2008 with total page 41 pages. Available in PDF, EPUB and Kindle. Book excerpt: Landsman and Maydew (2002) document that the information content of earnings announcements has increased over the past three decades, and Francis, Schipper, and Vincent (2002) conclude that expanded concurrent disclosures in firms' earnings announcements, especially the inclusion of detailed income statements, explain this increase. We posit and find that the temporal increase in the intensity of the market's reaction to Street earnings offers a competing explanation for the Landsman and Maydew finding. We also find that expanded concurrent disclosure of GAAP-based information contributes to the temporal increase in the information content of earnings announcements. However, unlike Francis et al., we find that the temporal increase in concurrent balance sheet and cash flow statement information dominates concurrent income statement information once we control for Street earnings.
Download or read book Limited Attention Statement of Cash Flow Disclosure and the Valuation of Accruals written by Bin Miao and published by . This book was released on 2015 with total page 62 pages. Available in PDF, EPUB and Kindle. Book excerpt: We test for the effect of limited attention on the valuation of accruals by comparing the immediate and long-term market reactions to earnings announcements between a subsample of firms that disclose only the balance sheet with a subsample of firms that disclose both the balance sheet and the statement of cash flows (SCF) in the earnings press release. Information about accruals generally can be inferred from comparative balance sheets, but the availability of the SCF makes accruals more salient and easier to process for investors with limited attention. Controlling for potential additional information and endogeneity of SCF disclosure, we find strong evidence that SCF disclosure enables more efficient pricing of accruals. Further analyses using a proxy for investor sophistication suggest that when SCF is absent from the earnings press release, less sophisticated investors fail to discount accruals but sophisticated investors do.
Download or read book An Evaluation of the Information Content of Cash Flow Data Disclosed with Corporate Earnings Announcements written by Thomas Peter Joesph D'Angelo and published by . This book was released on 2014 with total page 398 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Why Are Earnings Announcements So Important to Traders and Investors written by John Shon and published by Pearson Education. This book was released on 2011-03-16 with total page 23 pages. Available in PDF, EPUB and Kindle. Book excerpt: This Element is an excerpt from Trading on Corporate Earnings News: Profiting from Targeted, Short-Term Options Positions (9780137084920) by John Shon, Ph.D., and Ping Zhou, Ph.D. Available in print and digital formats. Understand those crucial quarterly earning announcements: how they work, and how they impact stock prices. Quarterly earnings announcement are the most salient, most anticipated, regularly-recurring announcement that companies make. They are the most watched piece of information that comes directly from the people that know the business the best. They are also considered the most reliable source of information, largely because companies are subject to strict SEC Rule 10b-5 rules...
Download or read book The Impact of Audit Completeness and Quality on Earnings Announcement GAAP Disclosures written by Joseph H. Schroeder and published by . This book was released on 2015 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This study examines the role of the external audit in management's decision about the amount of GAAP financial statement information to disclose in the annual earnings announcement. The earnings announcement is a key disclosure provided by public companies. Yet, there is no requirement that earnings announcements contain audited GAAP numbers; in fact, recent trends indicate that a majority of companies release earnings before the completion of year-end audit fieldwork. I predict and find that companies that wait until the audit is more complete at the earnings announcement date and receive higher quality audits provide more detailed balance sheet, cash flow statement and overall GAAP disclosures. I also provide evidence that complete audits and higher quality audits impact the information content of the earnings announcement. The combined results indicate that audit completeness and quality help facilitate more detailed earnings announcement disclosures and have implications for the equity market.
Download or read book Creative Cash Flow Reporting written by Charles W. Mulford and published by John Wiley & Sons. This book was released on 2005-05-13 with total page 432 pages. Available in PDF, EPUB and Kindle. Book excerpt: Successful methodology for identifying earnings-related reporting indiscretions Creative Cash Flow Reporting and Analysis capitalizes on current concerns with misleading financial reporting on misleading financial reporting. It identifies the common steps used to yield misleading cash flow amounts, demonstrates how to adjust the cash flow statement for more effective analysis, and how to use adjusted operating cash flow to uncover earnings that have been misreported using aggressive or fraudulent accounting practices. Charles W. Mulford, PhD, CPA (Atlanta, GA), is the coauthor of three books, including the bestselling The Financial Numbers Game: Identifying Creative Accounting Practices. Eugene E. Comiskey, PhD, CPA, CMA (Atlanta, GA), is the coauthor of the bestselling The Financial Numbers Game: Identifying Creative Accounting Practices.
Download or read book Earnings Announcement Disclosures and Changes in Analysts Information written by Orie E. Barron and published by . This book was released on 2016 with total page 45 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study examines how financial disclosures made with earnings announcements affect analysts' information about future earnings, focusing on disclosures of financial statements and management earnings forecasts. We find that disclosures of balance sheets and segment data are associated with an increase in the degree to which analysts' forecasts of upcoming quarterly earnings are based on private information. Further analyses show that balance sheet disclosures are associated with an increase in the precision of both analysts' common and private information, segment disclosures are associated with an increase in analysts' private information, and management earnings forecast disclosures are associated with an increase in analysts' common information. These results are consistent with analysts processing balance sheet and segment disclosures into new private information regarding near-term earnings. Additional analysis of conference calls shows that balance sheet, segment, and management earnings forecast disclosures are all associated with more discussion related to these items in the questions-and-answers section of conference calls, consistent with analysts playing an information interpretation role with respect to these disclosures.
Download or read book Disclosure of Cash Flow and Earnings Forecasts in Corporate Financial Reports written by Elliot Barry Siperstein and published by . This book was released on 1975 with total page 113 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Effect of Corporate Disclosure on the Post earnings Announcement Drift written by Amir Guttman and published by . This book was released on 1994 with total page 302 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Earnings Quality written by Jennifer Francis and published by Now Publishers Inc. This book was released on 2008 with total page 97 pages. Available in PDF, EPUB and Kindle. Book excerpt: This review lays out a research perspective on earnings quality. We provide an overview of alternative definitions and measures of earnings quality and a discussion of research design choices encountered in earnings quality research. Throughout, we focus on a capital markets setting, as opposed, for example, to a contracting or stewardship setting. Our reason for this choice stems from the view that the capital market uses of accounting information are fundamental, in the sense of providing a basis for other uses, such as stewardship. Because resource allocations are ex ante decisions while contracting/stewardship assessments are ex post evaluations of outcomes, evidence on whether, how and to what degree earnings quality influences capital market resource allocation decisions is fundamental to understanding why and how accounting matters to investors and others, including those charged with stewardship responsibilities. Demonstrating a link between earnings quality and, for example, the costs of equity and debt capital implies a basic economic role in capital allocation decisions for accounting information; this role has only recently been documented in the accounting literature. We focus on how the precision of financial information in capturing one or more underlying valuation-relevant constructs affects the assessment and use of that information by capital market participants. We emphasize that the choice of constructs to be measured is typically contextual. Our main focus is on the precision of earnings, which we view as a summary indicator of the overall quality of financial reporting. Our intent in discussing research that evaluates the capital market effects of earnings quality is both to stimulate further research in this area and to encourage research on related topics, including, for example, the role of earnings quality in contracting and stewardship.
Download or read book What do the S P 500 Disclose in Their Earnings Announcements Evidence on Financial Statements and Non GAAP Financial Measures written by Ana Cristina Marques and published by . This book was released on 2008 with total page 31 pages. Available in PDF, EPUB and Kindle. Book excerpt: The recent increase in the usefulness of earnings announcements is associated with the disclosure of income statements (Francis et al., 2002) and non-GAAP financial measures (Collins et al., 2005). This paper extends these results by investigating the disclosure and informativeness of non-GAAP financial statements and certain aspects of the disclosure of non-GAAP financial measures, analyzing quarterly earnings announcements' press releases of a sample of Samp;P500 firms during the 2001-2003 period. There are three main results. First, both the reconciliation and the non-GAAP consolidated statement of income have information content. Second, the study of the patterns of firms' disclosure of non-GAP financial measures indicates that out of 358 firms, 68% disclosed some non-GAAP financial measure in all the three years - thus, contrary to what was suggested by previous research (e.g.: Allee et al, 2007), this disclosure is not sporadic. Finally, an analysis of the emphasis given to non-GAAP financial measures indicates that, in 2003, the relative emphasis is significantly higher in the cases where the GAAP earnings number does not reach a certain threshold but the non-GAAP earnings number does. This suggests that managers respond to economic motivations when deciding how much emphasis should de given to non-GAAP earnings.
Download or read book The Information Content of Timely Sales Disclosures written by Yamin Hao and published by . This book was released on 2014 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the information content of voluntary monthly sales disclosures by retailers. Prior research suggests that quarterly earnings announcements explain only a small portion of the variation in annual or quarterly buy-and-hold abnormal returns, but likely play an important role in lending credibility to more timely management disclosures. Consistent with this notion, we find that earnings announcements only explain about 8% of the variation in total quarterly buy-and-hold abnormal returns, while reported monthly sales explain an additional 29%. To our knowledge no other single type of routine disclosure explains more. Monthly sales disclosures also provide a clean setting to isolate the information content of sales from earnings, which enables us to demonstrate that sales information is much more informative to the stock market than documented in prior studies. Furthermore, consistent with forecasting models of earnings and cash flows, we document that the market reaction to monthly sales disclosures stems primarily from growth in same store sales (the persistent portion of total revenue) rather than sales changes from store openings and closings (the transitory portion of total revenue).
Download or read book Voluntary Disclosure of Balance Sheet Information in Quarterly Earnings Announcements written by Shuping Chen and published by . This book was released on 2001 with total page 35 pages. Available in PDF, EPUB and Kindle. Book excerpt: We investigate a pervasive voluntary disclosure practice ? managers including balance sheets with quarterly earnings announcements. Consistent with expectations, we find that managers voluntarily disclose balance sheets when current earnings are relatively less informative, or when future earnings are relatively more uncertain. Specifically, balance sheet disclosures are more likely among firms: (1) in high technology industries; (2) reporting losses; (3) with larger forecast errors; (4) engaging in mergers or acquisitions; (5) that are younger; and (6) with more volatile stock returns. This is consistent with managers disclosing balance sheets in response to investor demand for value relevant information to supplement earnings.
Download or read book Earnings written by D. Eric Hirst and published by Wiley. This book was released on 2000-11-28 with total page 80 pages. Available in PDF, EPUB and Kindle. Book excerpt: Hirst and Hopkins guide analysts to a comprehension of how income statements and other disclosures can be used to assess the underlying quality and persistence of companies' economic conditions.
Download or read book Developments in Financial Reporting by Multinationals written by Clare B. Roberts and published by Edward Elgar Publishing. This book was released on 2004 with total page 616 pages. Available in PDF, EPUB and Kindle. Book excerpt: This volume is concerned with financial reporting issues resulting from the growth and spread of multinational corporations. The book consists of up-to-date readings from a broad range of international journals which look at, and evaluate, the financial accounting techniques adopted in different parts of the world for dealing with issues such as segment reporting, disclosure standards, financial reporting and stock markets. The final part deals with the reporting practices of individual companies over time. This insightful volume will be of value to researchers and practitioners alike.
