TY - JOUR
T1 - Financial Statement Comparability and Investor Responsiveness to Earnings News
AU - Stallings, Matthew A.
N1 - This study investigates the role of financial statement comparability in the stock price sensitivity to firm-specific earnings news. Results suggest that information content of earnings is greater for firms with higher comparability, suggesting that comparability contributes to information usefulness for investors in equity valuation decisions.
PY - 2017
Y1 - 2017
N2 - This study investigates the role of financial statement comparability in the stock price sensitivity to firmspecific earnings news. Results suggest that information content of earnings is greater for firms with higher comparability, suggesting that comparability contributes to information usefulness for investors in equity valuation decisions. Further support indicates that comparability enhances usefulness through increased response to positive earnings surprises. This influence is pronounced for the earnings news of small firms, high volatility firms, growth/value firms, and firms with low return on assets, suggesting that comparability is more informative for more speculative stocks.
AB - This study investigates the role of financial statement comparability in the stock price sensitivity to firmspecific earnings news. Results suggest that information content of earnings is greater for firms with higher comparability, suggesting that comparability contributes to information usefulness for investors in equity valuation decisions. Further support indicates that comparability enhances usefulness through increased response to positive earnings surprises. This influence is pronounced for the earnings news of small firms, high volatility firms, growth/value firms, and firms with low return on assets, suggesting that comparability is more informative for more speculative stocks.
KW - Financial statement comparability
KW - corporate news
KW - earnings response coefficient
KW - firm-specific earnings
KW - information content of earnings
UR - https://ir.stthomas.edu/ocbacctpub/79
M3 - Article
JO - Journal of Accounting and Finance
JF - Journal of Accounting and Finance
ER -