Information Content of Annual Earnings Announcements: Evidence from Moroccan Stock Market

This study discusses technical analysis signal and earnings-announcements timing. Technical analysis signal is used to capture price reaction around earnings announcement dates. Technical analysis is selected because it is potential for competing information as fundamental information in emerging market, especially in Indonesian stock market. The longer reporting lag will result in a tendency of bigger information leakage which makes price reaction before announcements stronger. That reaction produces a reliable technical analysis signal. By using Indonesian stock market data, the results show that (1) technical analysis signal generates bigger (lower) return for late (earlier) reporting, and (2) reporting lag positively affects the performance of technical analysis signal that emerge before annual earnings announcements. These findings indicate a tendency of bigger information leakage for companies that delay earnings announcements. It contributes to building a bridge between technical analysis and earnings-announcement timing studies.

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The information content of losses around earnings announcements in the Finnish stock market

Applied Economics Letters ◽

10.1080/135048598354681 ◽

1998 ◽

Vol 5 (6) ◽

pp. 343-346 ◽

Cited By ~ 5

Author(s):

Minna Martikainen

Keyword(s):

Stock Market ◽

Information Content ◽

Earnings Announcements

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A longitudinal analysis for informativeness of earnings announcements in Borsa Istanbul

Journal of Capital Markets Studies ◽

10.1108/jcms-09-2019-0045 ◽

2019 ◽

Vol 3 (2) ◽

pp. 179-187

Author(s):

Aykut Ahlatcioglu ◽

Nesrin Okay

Keyword(s):

Information Content ◽

Time Trend ◽

Information Dissemination ◽

Emerging Market ◽

Earnings Announcements ◽

Information Value ◽

Data Sets ◽

Content Type ◽

Positive Time ◽

Annual Earnings

Purpose The purpose of this paper is to assess the information value of earnings announcements for the 2007–2017 period in Borsa Istanbul. Design/methodology/approach Abnormal volatility (AVOL) and abnormal absolute return (AAR) in the three-day window around the earnings announcement are used as proxies for information content. A pooled regression of AVOL and AAR is conducted to test for the existence of information content and analyze its time trend along with its determinants. Findings The authors find significantly positive AVOL and AAR which shows that earnings have information content for investors during the sample period. Furthermore, both proxies demonstrate a positive time trend after controlling for various firm characteristics and surprise measures. The authors take this as evidence that overall informativeness of earnings has increased over time. The authors observe that this increase is most prevalent for growth companies and earnings announcements with high absolute surprise. This study provides partial support for the hypothesis that value of earnings announcements has increased after an improvement in information dissemination technology with the inception of the online disclosure platform, KAP. Practical implications Understanding information value of earnings announcements is of interest for companies which prepare earnings reports, regulators who set standards on their content and frequency and investors which make investment decisions based on information released at these announcements. Originality/value There had been few non-US studies related to information value of earnings announcements. The overwhelming majority of these are conducted using limited data sets from the latter part of the last century and only analyze annual earnings announcements. The authors aim to shed light on the subject using a broad and recent sample of quarterly earnings announcements from a major emerging market, Turkey.

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