Monthly “Earnings Announcements” and Stock Returns

Speaker: Jialin Yu Hong Kong University of Science and Technology

Topic:	Monthly “Earnings Announcements” and Stock Returns
Date:	May 5, 2017
Venue:	Room 502, Daoyuan Building, CUHK(SZ)
Speaker:	Jialin Yu Hong Kong University of Science and Technology
Detail/Abstract:	We hypothesize that companies summarize performance on a regular monthly basis, on top of quarterly earnings report. Such monthly “earnings” is “announced” at the beginning of (next) calendar month and influences investor expectation. Consistently, we find that company guidance, analyst revision, and stock price innovation occur more in early than in later part of a month. The monthly “earnings announcements” identify that the majority (53%) of value premium is due to correction of expectational error when information about fundamental arrives.