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Media type:
E-Article
Title:
Less timely earnings announcements and voluntary disclosure
Contributor:
Cho, Hyunkwon;
Choi, Sunhwa;
Kim, Robert
Published:
Wiley, 2023
Published in:
Journal of Business Finance & Accounting, 50 (2023) 3-4, Seite 524-564
Language:
English
DOI:
10.1111/jbfa.12642
ISSN:
1468-5957;
0306-686X
Origination:
Footnote:
Description:
<jats:title>Abstract</jats:title><jats:p>The release of earnings information has become less timely in recent years partly because firms increasingly disclose earnings concurrently with their periodic reports (e.g., 10‐Ks, 10‐Qs). We examine whether firms use voluntary disclosure to mitigate the negative economic consequences of less timely earnings announcements (EAs). We find that firms with less timely EAs are more likely to provide voluntary 8‐K filings over the period leading to the EA. We also find that investors’ demand for timely information, the nature of earnings news and litigation risk affect the extent to which firms provide voluntary disclosure to compensate for less timely EAs. The negative effect of less timely EAs on information asymmetry is attenuated when firms provide voluntary 8‐K filings prior to EAs. Overall, our findings suggest that firms voluntarily communicate with investors using voluntary disclosure when their EAs are less timely.</jats:p>