Prior research examining the effects of earnings release timing on the parameters of the linear model relating unexpected earnings and unexpected stock returns can conveniently be divided into studies based on either the "bad news is delayed" behavioral motivation or the predisclosure information environment argument. This dissertation proposes that the position the firm takes in its industry earnings release queue (PERQ) represents a firm-specific information production parameter associated with cross-sectional differences in the earnings response coefficient (ERC), and extends the literature by examining the two aforementioned arguments jointly while controlling for previously identified ERC determinants. / Trueman (1990) provides an analytical link between report timing and the industry environment. Market participants recognize the ability of firm managers announcing later in the ERQ to manage reported earnings, and react more positively to earnings reported earlier. Trueman provides two models, one where earnings management requires a delay in reporting, and one where earnings management does not depend on the release of other industry members' earnings. The models differ in their relationship between the differential security price reaction between early and late announcements and the unexpected industry earnings. This dissertation extends the literature by testing Trueman's analytical models. / The results indicate that PERQ is a firm-specific information production parameter negatively associated with cross-sectional differences in ERC. Trueman's analytical model assuming earnings management does not depend on the release of other industry members' earnings was found to capture the market's response to industry release timing. / Source: Dissertation Abstracts International, Volume: 55-07, Section: A, page: 2038. / Major Professor: Stephen P. Baginski. / Thesis (Ph.D.)--The Florida State University, 1994.
| Identifer | oai:union.ndltd.org:fsu.edu/oai:fsu.digital.flvc.org:fsu_77191 |
| Contributors | Rambo, Robert George., Florida State University |
| Source Sets | Florida State University |
| Language | English |
| Detected Language | English |
| Type | Text |
| Format | 106 p. |
| Rights | On campus use only. |
| Relation | Dissertation Abstracts International |
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