Earnings revisions in SEC filings from prior preliminary announcements

Dana Hollie*, Joshua Livnat, Benjamin Segal

*Corresponding author for this work

Research output: Contribution to journalReview articlepeer-review

16 Scopus citations


This article investigates earnings revisions that occur between preliminary earnings announcements and the immediate subsequent Securities and Exchange Commission (SEC) filings. On average, the absolute value of the revision is 2.9% of the market value of equity where earnings were revised by more than US$100,000. The authors find that earnings revisions are more likely to occur for firms that are more complex, are more financially leveraged, have greater earnings volatility, have losses, and have switched auditors. They find that investors react to the new information in the earnings revisions but find mixed evidence about whether the act of revision itself indicates lower earnings quality to investors. The authors' findings suggest that financial analysts, investors, and regulators alike should pay close attention not only to an earnings surprise at the preliminary earnings announcement date but also at the SEC filing date to determine whether a subsequent earnings surprise occurs.

Original languageAmerican English
Pages (from-to)3-31
Number of pages29
JournalJournal of Accounting, Auditing and Finance
Issue number1
StatePublished - Jan 2012


  • SEC filings
  • asset pricing
  • earnings announcement
  • earnings revisions
  • market efficiency


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