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Do Firms Strategically Use Non-Earnings Press Releases

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  • Hyeon, Jiwon
  • Cho, Hyunkwon
  • Lee, Joonil

Abstract

This study examines the strategic use of non-earnings press releases (NEPR) by firms experiencing poor financial performances. Utilizing a dataset from Naver.com, we classify news originating from press releases by applying deep-learning techniques and find that firms issue more NEPR in the fourth quarter following poor performance in the first three quarters. Market reactions to NEPR vary based on previous performance, suggesting investors recognize firms' strategic intention of these releases. This study emphasizes the need for market participants to assess the motives behind NEPR, especially from poor performing firms.

Suggested Citation

  • Hyeon, Jiwon & Cho, Hyunkwon & Lee, Joonil, 2024. "Do Firms Strategically Use Non-Earnings Press Releases," Finance Research Letters, Elsevier, vol. 63(C).
    • Handle: RePEc:eee:finlet:v:63:y:2024:i:c:s1544612324002885
    DOI: 10.1016/j.frl.2024.105258
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    References listed on IDEAS

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    More about this item

    Keywords

    Non-earnings press release; Disclosure; Market response; Strategic behavior; Fourth quarter reporting;
    All these keywords.

    JEL classification:

    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • M37 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Advertising
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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