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The information content of operations-related disclosures

Guang Ma (Desautels Faculty of Management, McGill University, 1001 Sherbrooke St. W., Montreal, QC H3A 1G5, Canada) *

Journal of Accounting Literature

ISSN: 0737-4607

Article publication date: 19 November 2019

Issue publication date: 31 December 2019

49

Abstract

This study examines the information content of firms’ operations-related disclosures (ORDs) and the importance of these disclosures as an information source to stock markets relative to other commonly examined sources of information. I find that ORDs constitute a large portion of corporate press releases. These disclosures are associated with significant stock price reactions and trading volume. The stock price reactions to ORDs are greater than the reactions to 10-K/Q reports and are of similar magnitudes to the reactions to 8-K filings. On average, ORDs explain variation in firms’ quarterly returns to a similar degree as management earnings forecasts and 10-K/Q reports for the full sample and to a greater degree for small firms and firms with lower earnings quality.

Keywords

Citation

Ma, G. (2019), "The information content of operations-related disclosures", Journal of Accounting Literature, Vol. 43 No. 1, pp. 87-107. https://doi.org/10.1016/j.acclit.2019.11.004

Publisher

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Emerald Publishing Limited

Copyright © 2019, Emerald Publishing Limited

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