The impact of COVID-19 on investor response to earnings and monthly sales news

IF 0.9 Q3 BUSINESS, FINANCE
Hsueh-Tien Lu
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Abstract

The novel coronavirus (COVID-19) situation provides new insights into how macroeconomic shocks affect investors’ processing of firm disclosures. This study focuses on the market reactions to mandatory firm disclosures, that is, earnings announcements and the unique practice of monthly sales disclosure in the Taiwanese stock market, and seeks to provide evidence that timely sales information attracts more incremental investor attention than earnings news after a sudden shock. This study finds decreased (increased) market reaction to earnings news (monthly sales news) during the turmoil period of the stock market than during the pre- and post-turmoil periods. I further explore the effects of stock market conditions on the market reaction to the firm disclosures. I observe that a shrinking market leads to lesser (greater) investors’ attention on earnings news (monthly sales news) than a soaring market does. These results imply that the market demand on the earnings or monthly sales news depends on investors’ relative risk aversion. In addition, this study provides evidence that the trade-off between the market reaction to earnings and monthly sales news seems to be temporary, however, the market reaction to the news had not returned to pre-crisis levels during the sample period of this study. This paper shows that the increased decision usefulness of timely monthly sales information may supplement the decreased decision usefulness of earnings news during a negative macroeconomic event.

COVID-19 对投资者对盈利和月度销售新闻反应的影响
新型冠状病毒(COVID-19)的情况为宏观经济冲击如何影响投资者对公司信息披露的处理提供了新的见解。本研究重点关注台湾股市对强制性公司信息披露(即盈利公告和每月销售信息披露的独特做法)的市场反应,并试图提供证据,证明在突发冲击后,及时的销售信息比盈利新闻更能吸引投资者的增量关注。本研究发现,与股市震荡前和震荡后相比,股市震荡期间市场对盈利新闻(月度销售新闻)的反应有所减弱(增强)。我进一步探讨了股市状况对市场对公司信息披露反应的影响。我发现,市场萎缩导致投资者对盈利新闻(月度销售新闻)的关注度低于(高于)市场飙升导致的关注度。这些结果表明,市场对盈利或月度销售新闻的需求取决于投资者的相对风险规避程度。此外,本研究还提供证据表明,市场对盈利新闻和月度销售新闻的反应之间的权衡似乎是暂时的,然而,在本研究的样本期内,市场对新闻的反应并未恢复到危机前的水平。本文表明,在负面宏观经济事件中,及时的月度销售信息所增加的决策有用性可能会补充盈利新闻所减少的决策有用性。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
CiteScore
2.30
自引率
7.10%
发文量
69
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