Earnings announcement and information spillover: evidence from cross-listing
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Date
2023
Authors
Sumon, Khairul Kabir
University of Lethbridge. Dhillon School of Business
Journal Title
Journal ISSN
Volume Title
Publisher
Lethbridge, Alta. : University of Lethbridge, Dhillon School of Business
Abstract
This study explores the intra-country information spillover of earnings announcements by a cross-listed firm to its non-announcing peer firms from the same home country in the US market from 1993 to 2021. Using a standard event study methodology, this study shows that non-announcing peer firms' cumulative abnormal returns (CARs) show a statistically significant positive association with the CARs of announcing firms over a three-day event window around the earnings announcement. The magnitude of information spillover of earnings announcements on peer firms is more pronounced in the bear market than in the bullish market. The intensity of information spillover is stronger and positively related to the home country's financial reporting quality and the size of the announcing firms.
Description
Keywords
cross-listed firms , earnings announcements , information spillover , intra-country information transfer