IDEAS home Printed from https://ideas.repec.org/a/ibf/acttax/v1y2009i1p1-13.html
   My bibliography  Save this article

Voluntary Disclosures and Earnings Surprises: The Case of High-Tech Firms in Periods of Bad Economic News

Author

Listed:
  • John Shon

Abstract

In this study, I examine the voluntary disclosure behavior of high-tech firms experiencing bad economic news. I create a sample of 100 randomly-selected firm-quarters with negative returns—but not necessarily negative earnings surprises. I find that: (i) the unconditional relation between earnings surprises and voluntary disclosures is non-existent in this setting where negative stock returns are controlled for, but (ii) firms with negative earnings surprises make forward-looking statements with more negative information content—but only when conditioned on firm size or growth opportunities. Sample selection procedures can therefore affect inferences drawn from voluntary disclosure behavior documented in extant studies. Conditional analysis reveals how the earnings-disclosure relation crosssectionally varies with firms’ economic characteristics.

Suggested Citation

  • John Shon, 2009. "Voluntary Disclosures and Earnings Surprises: The Case of High-Tech Firms in Periods of Bad Economic News," Accounting & Taxation, The Institute for Business and Finance Research, vol. 1(1), pages 1-13.
    • Handle: RePEc:ibf:acttax:v:1:y:2009:i:1:p:1-13
    as

    Download full text from publisher

    File URL: http://www.theibfr2.com/RePEc/ibf/acttax/at-v1n1-2009/AT-V1N1-2009-1.pdf
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Malthus Timothy Ekpe & Rosemary Obiageri Obasi & Sadiq Rabiu Abdullahi & Umar Aliyu Mustapha & Norfadzilah Rashid, 2020. "Earnings Surprises and Stock Price Reactions of Quoted Companies in Nigeria," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(4), pages 306-315, July.

    More about this item

    Keywords

    Voluntary disclosures; earnings surprise; bad economic news; litigation risk;
    All these keywords.

    JEL classification:

    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ibf:acttax:v:1:y:2009:i:1:p:1-13. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Mercedes Jalbert (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.