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The information content of operations-related disclosures

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  • Ma, Guang

Abstract

This study examines the information content of firms’ operations-related disclosures (ORDs) and the importance of these disclosures as an information source to stock markets relative to other commonly examined sources of information. I find that ORDs constitute a large portion of corporate press releases. These disclosures are associated with significant stock price reactions and trading volume. The stock price reactions to ORDs are greater than the reactions to 10-K/Q reports and are of similar magnitudes to the reactions to 8-K filings. On average, ORDs explain variation in firms’ quarterly returns to a similar degree as management earnings forecasts and 10-K/Q reports for the full sample and to a greater degree for small firms and firms with lower earnings quality.

Suggested Citation

  • Ma, Guang, 2019. "The information content of operations-related disclosures," Journal of Accounting Literature, Elsevier, vol. 43(C), pages 87-107.
    • Handle: RePEc:eee:joacli:v:43:y:2019:i:c:p:87-107
    DOI: 10.1016/j.acclit.2019.11.004
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    More about this item

    Keywords

    Nonfinancial disclosure; Operations disclosure; Information content; Relative importance;
    All these keywords.

    JEL classification:

    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • M4 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting

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