IDEAS home Printed from https://ideas.repec.org/a/taf/euract/v29y2020i4p723-751.html
   My bibliography  Save this article

The Role of the Business Press in Creating and Disseminating Information around Earnings Announcements

Author

Listed:
  • Joshua Coyne
  • Kevin H. Kim
  • Sangwan Kim

Abstract

This paper investigates the role of the business press in creating and disseminating information around earnings announcements by examining different motivations of trading volume. We find that press coverage is positively associated with trading activity motivated by differential interpretation and by differential belief revision, consistent with the press playing both an information creation and information dissemination role around earnings announcements. When we divide press coverage into full articles with additional editorial content and news flashes merely repeating verbatim of firm-disclosed press releases, we find that trading volume motivated by both differential interpretation and differential belief revision increases as coverage by full articles increases, and trading volume motivated by differential belief revision increases as coverage by news flashes increases. We also report that the differential interpretation effect of full articles is more pronounced when information users’ sophistication is high. Overall, we provide new evidence to the literature by showing that each type of press coverage plays an informational role in different motivations of trading activity.

Suggested Citation

  • Joshua Coyne & Kevin H. Kim & Sangwan Kim, 2020. "The Role of the Business Press in Creating and Disseminating Information around Earnings Announcements," European Accounting Review, Taylor & Francis Journals, vol. 29(4), pages 723-751, July.
    • Handle: RePEc:taf:euract:v:29:y:2020:i:4:p:723-751
    DOI: 10.1080/09638180.2019.1670224
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/09638180.2019.1670224
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/09638180.2019.1670224?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.

    Citations

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


    Cited by:

    1. Kim, Robert & Kim, Sangwan, 2021. "Does revenue-expense matching play a differential role in analysts’ earnings and revenue forecasts?," The British Accounting Review, Elsevier, vol. 53(5).

    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:euract:v:29:y:2020:i:4:p:723-751. 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/REAR20 .

    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.