IDEAS home Printed from https://ideas.repec.org/a/taf/ijecbs/v21y2014i3p261-289.html
   My bibliography  Save this article

The Effect of Timeliness and Credit Ratings on the Information Content of Earnings Announcements

Author

Listed:
  • Stergios Leventis
  • Apostolos Dasilas
  • Stephen Owusu-Ansah

Abstract

This paper investigates the impact of timeliness and credit ratings on the information content of the earnings announcements of Greek listed firms from 2001 to 2008. Using the classical event study methodology and regression analysis, we find that firms tend to release good news on time and are inclined to delay the release of bad news. We also provide evidence that the level of corporate risk differentiates the information content of earnings according to the credit rating category. Specifically, firms displaying high creditworthiness enjoy positive excess returns on earnings announcement dates. In contrast, firms with low creditworthiness undergo significant share price erosions on earnings announcement days. We also observe a substitution effect between timeliness and credit ratings in relation to the information content of earnings announcements. Specifically, we find that as the credit category of earnings-announcing firms improves, the informational role of timeliness is mitigated.

Suggested Citation

  • Stergios Leventis & Apostolos Dasilas & Stephen Owusu-Ansah, 2014. "The Effect of Timeliness and Credit Ratings on the Information Content of Earnings Announcements," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 21(3), pages 261-289, November.
    • Handle: RePEc:taf:ijecbs:v:21:y:2014:i:3:p:261-289
    DOI: 10.1080/13571516.2014.947194
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/13571516.2014.947194
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/13571516.2014.947194?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    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:taf:ijecbs:v:21:y:2014:i:3:p:261-289. 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/CIJB20 .

    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.