The structure of United States security markets and information systems create incentives for managers to time strategically the release of accounting information when security markets are open or closed. This research tests two theories that offer predictions about when managers will release accounting earnings. The first theory, developed by Trueman (1991) predicts that managers choose the time of release to maximize security markets' reaction to good news, as determined by firms' economic earnings. The expectations adjustment hypothesis predicts managers choose the time of release based on the information environment facing the firm. The theory predicts that firms operating in environments marked by high degrees of information asymmetry will release earnings when security markets are closed. / The results of the empirical tests do not support either of the two theories. Accounting earnings released when security markets are closed are not associated with smaller measurement errors with regard to accounting and economic earnings. Open announcements additionally do not result in larger market reactions after controlling for accounting earnings. Finally, earnings released when security markets are closed are not associated with greater information asymmetry or larger absolute unexpected accounting earnings. / The lack of significant results may be driven by differences between closed announcements made before security markets open and after security markets close. Earnings released before markets open contain more good news than earnings released after markets are closed and are similar to earnings released when markets are open. / Source: Dissertation Abstracts International, Volume: 53-10, Section: A, page: 3622. / Major Professor: Stephen P. Baginski. / Thesis (Ph.D.)--The Florida State University, 1992.
| Identifer | oai:union.ndltd.org:fsu.edu/oai:fsu.digital.flvc.org:fsu_76765 |
| Contributors | Pagach, Donald Patrick., Florida State University |
| Source Sets | Florida State University |
| Language | English |
| Detected Language | English |
| Type | Text |
| Format | 98 p. |
| Rights | On campus use only. |
| Relation | Dissertation Abstracts International |
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