TY - JOUR
T1 - Oops, our earnings were indeed preliminary
AU - Hollie, Dana
AU - Livnat, Joshua
AU - Segal, Benjamin
PY - 2005
Y1 - 2005
N2 - The market reacts to earnings surprises when firms report different earnings in SEC filings from earnings reported just a few weeks earlier in preliminary earnings announcements. This is a new finding. When SEC filings include material new information, investors incorporate this in pricing company shares. Market reactions are stronger in the case of downward earnings revisions than upward earnings revisions, but an inverse drift in abnormal returns occurs for upward earnings revisions after the SEC filing date. Finally, it is documented that security analysts revise their forecasts upon the preliminary earnings announcement, but ignore the new information in the SEC filings.
AB - The market reacts to earnings surprises when firms report different earnings in SEC filings from earnings reported just a few weeks earlier in preliminary earnings announcements. This is a new finding. When SEC filings include material new information, investors incorporate this in pricing company shares. Market reactions are stronger in the case of downward earnings revisions than upward earnings revisions, but an inverse drift in abnormal returns occurs for upward earnings revisions after the SEC filing date. Finally, it is documented that security analysts revise their forecasts upon the preliminary earnings announcement, but ignore the new information in the SEC filings.
UR - http://www.scopus.com/inward/record.url?scp=14544302132&partnerID=8YFLogxK
U2 - 10.3905/jpm.2005.470582
DO - 10.3905/jpm.2005.470582
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AN - SCOPUS:14544302132
SN - 0095-4918
VL - 31
SP - 94
EP - 104
JO - Journal of Portfolio Management
JF - Journal of Portfolio Management
IS - 2
ER -