The Role of Newswires in Screening and Disseminating Value-Relevant Information in Periodic Sec Reports*

Li, Edward Xuejun; Ramesh, K.; Shen, Min

doi:10.2139/ssrn.1465158

Cited by 34 publications

(45 citation statements)

References 40 publications

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“…More broadly, our study also extends prior literature examining the role of various information intermediaries in the earnings disclosure process: equity analysts (Zhang, 2008), the press (e.g., Bushee et al, 2010), social media (e.g., Blankespoor et al, 2014), newswires (e.g., Boulland et al, 2017), and news alert services (e.g., Li et al, 2011). Our study focuses on an intermediary that performs a distinct task -the construction and the distribution of street earnings -on behalf of investors and other intermediaries.…”

Section: Introductionsupporting

confidence: 77%

The Roles of Data Providers and Analysts in the Production, Dissemination, and Pricing of Street Earnings

et al. 2018

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Street earnings are non-GAAP earnings, adjusted for consistency with the analyst majority basis and disseminated by forecast data providers (FDPs). We find that the time it takes an FDP to incorporate street earnings in its products (activation delay, hereafter) reflects variation in the difficulty of constructing street earnings, investor demand for timely street earnings, and FDPs' limited attention and resources. Furthermore, the market reaction to reported earnings is more timely when activation delay is shorter, and price discovery is highly concentrated during the hour after street earnings are activated. Finally, activation delay increases the delay with which street earnings are incorporated in analyst forecasts. We conclude that frictions in information processing prevent market participants from instantaneously constructing and incorporating street earnings in their decisions, and that FDPs play a key role in alleviating these frictions.

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Section: Introductionsupporting

confidence: 77%

The Roles of Data Providers and Analysts in the Production, Dissemination, and Pricing of Street Earnings

et al. 2018

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“…Corporate disclosures also “often reach only a portion of investors, which results in information asymmetry among investors” (Blankespoor et al, , p. 79). Second, the prior research (Bushee et al, ; Li, Ramesh, & Shen, ) has paid particular attention to press releases, as an information intermediary, to examine the effect of dissemination on information asymmetry. The press, however, is biased towards the coverage of highly visible firms and often modifies the information released by firms by adding a discussion, providing opinions, and/or summarising the news (Blankespoor et al, ).…”

Section: Introductionmentioning

confidence: 99%

The effect of carbon dissemination on cost of equity

2019

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This study examines whether firms can influence their cost of equity (COE) by broadly disseminating their carbon information over Twitter. We study firms' dissemination decisions of carbon information by developing a comprehensive measure of carbon information that a firm makes onTwitter, referred to as iCarbon. Using a sample of 1,737 firmyear observations for 584 nonfinancial firms with aTwitter account and listed on the U.S. NASDAQ stock exchange over the period 2009-2015, we find that iCarbon is significantly and negatively associated with COE. Our results are consistent after determining the effect of Bloomberg's environmental and environmental, social, and governance disclosure. The findings also hold when using alternative measures of COE and iCarbon.

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“…Li, Ramesh, and Shen () document that it takes on average 2.3 weekdays for the Dow Jones Newswires to post an alert after an SEC report is filed, and D'Souza, Ramesh, and Shen () document that S&P takes on average 14 weekdays to post a company's quarterly financials on COMPUSTAT. In addition, Chychyla and Kogan () provide evidence of substantial discrepancies between COMPUSTAT and SEC XBRL filings.…”

mentioning

confidence: 99%

The Determinants and Consequences of Information Acquisition via EDGAR

Drake

Roulstone

Thornock

2015

Contemporary Accting Res

302

125

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Using a novel data set that tracks all web traffic on the SEC's EDGAR servers from 2008 to 2011, we examine the determinants and capital market consequences of investor information acquisition of SEC filings. The average user employs the database very few times per quarter and most users target specific filing types such as periodic accounting reports; a small subset of users employ EDGAR almost daily and access many filings. EDGAR activity is positively related with corporate events (particularly restatements, earnings announcements, and acquisition announcements), poor stock performance, and the strength of a firm's information environment. EDGAR activity is related to, but distinct from, other proxies of investor interest such as trading volume, business press articles, and Google searches. Finally, information acquisition via EDGAR, both to obtain earnings news and to provide context for it, has a positive influence on market efficiency with respect to earnings news. Overall, our results are important because they provide a unique, user‐based perspective on investor access of mandatory disclosures and its impact on price formation.

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The Role of Newswires in Screening and Disseminating Value-Relevant Information in Periodic Sec Reports*

Cited by 34 publications

References 40 publications

The Roles of Data Providers and Analysts in the Production, Dissemination, and Pricing of Street Earnings

The Roles of Data Providers and Analysts in the Production, Dissemination, and Pricing of Street Earnings

The effect of carbon dissemination on cost of equity

The Determinants and Consequences of Information Acquisition via EDGAR

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