Intra-Industry Information Transfers and the Post-Earnings Announcement Drift

• Autores: Tünde Kovács
• Localización: Contemporary Accounting Research, ISSN-e 1911-3846, Vol. 33, Nº. 4, 2016, págs. 1549-1575
• Idioma: inglés
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• Resumen

  • This study examines the role of intra-industry information transfers in the analyst forecast-based post-earnings announcement drift. I find that subsequent same-industry-peer earnings announcements influence a firm's post-earnings announcement drift if these subsequent announcements confirm the firm's initial earnings surprise and the firm's industry exhibits ex ante positive (common effect) intra-industry information transfers. The results suggest that underreaction to industry-specific information contributes to analyst forecast-based post-earnings announcement drift.