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https://ruomo.lib.uom.gr/handle/7000/319
Title: | The Effect of Timeliness and Credit Ratings on the Information Content of Earnings Announcements |
Authors: | Leventis, Stergios Dasilas, Apostolos Owusu-Ansah, Stephen |
Type: | Article |
Subjects: | FRASCATI::Social sciences::Economics and Business::Finance |
Issue Date: | 2014 |
Source: | International Journal of the Economics of Business |
Volume: | 21 |
Issue: | 3 |
First Page: | 261 |
Last Page: | 289 |
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. |
URI: | https://doi.org/10.1080/13571516.2014.947194 https://ruomo.lib.uom.gr/handle/7000/319 |
ISSN: | 1357-1516 1466-1829 |
Other Identifiers: | 10.1080/13571516.2014.947194 |
Appears in Collections: | Department of Applied Informatics |
Files in This Item:
File | Description | Size | Format | |
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The effect of timeliness and credit ratings on the information content of earnings announcements. Final revision.pdf | 606,6 kB | Adobe PDF | View/Open |
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