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Are Friday announcements special in a continuous disclosure environment?

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  • Larelle Chapple
  • Lien Duong
  • Thu Phuong Truong

Abstract

We re‐test the intuition that investors and traders could be preoccupied with the upcoming weekend and pay less attention to Friday corporate announcements in the continuous disclosure environment of Australia. The market reaction to Friday announcements in the US, except for earnings announcements, disappears after correcting for selection bias. However, there is no evidence of investor inattention to Friday announcements in Australia, indicating that a continuous disclosure environment improves disclosure timeliness and market efficiency. The investor attention theory is significantly challenged in a unique natural setting where the potential selection bias to delay material information release to Fridays is eliminated.

Suggested Citation

  • Larelle Chapple & Lien Duong & Thu Phuong Truong, 2021. "Are Friday announcements special in a continuous disclosure environment?," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 61(S1), pages 2031-2067, April.
    • Handle: RePEc:bla:acctfi:v:61:y:2021:i:s1:p:2031-2067
    DOI: 10.1111/acfi.12652
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    References listed on IDEAS

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