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Not just for investors: The role of earnings announcements in guiding job seekers

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  • Choi, Bong-Geun
  • Choi, Jung Ho
  • Malik, Sara

Abstract

We study the information content of earnings announcements and its relevance for job search using detailed search data from half a million anonymous job seekers. We find evidence consistent with job seekers initiating job-search activity in response to a prospective employer's earnings announcements. Job seekers search more intensely for employers with media coverage and earnings growth, consistent with the attention and information roles of earnings announcements. We find corroborating evidence about the usefulness of earnings announcements' financial information content to job seekers: (1) a survey experiment indicates that job seekers are more willing to apply to firms when provided with evidence of positive performance; (2) job seekers search for financial information during applications and interviews; and (3) financial information is predictive of future job prospects, including job openings and career growth. Overall, our paper suggests that earnings announcements—among other sources—prompt and guide job seekers' search activities.

Suggested Citation

  • Choi, Bong-Geun & Choi, Jung Ho & Malik, Sara, 2023. "Not just for investors: The role of earnings announcements in guiding job seekers," Journal of Accounting and Economics, Elsevier, vol. 76(1).
    • Handle: RePEc:eee:jaecon:v:76:y:2023:i:1:s0165410123000125
    DOI: 10.1016/j.jacceco.2023.101588
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    1. Ciao-Wei Chen & Laura Yue Li, 2023. "Is hiring fast a good sign? The informativeness of job vacancy duration for future firm profitability," Review of Accounting Studies, Springer, vol. 28(3), pages 1316-1353, September.

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    More about this item

    Keywords

    Job Search; Job Prospects; Attention; Implicit Claims; Earnings Announcements; Financial Reporting; Recruitment;
    All these keywords.

    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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