How did Covid-19 affect investors? interpretation of earnings news? The role of accounting conservatism

被引：5
作者：
D'Augusta, Carlo [1 ]
Grossetti, Francesco [1 ,2 ,3 ]
机构：
[1] Bocconi Univ, Dept Accounting, I-20136 Milan, Italy
[2] Bocconi Univ, Ctr Appl Res Int Markets Baffi Carefin, I-20136 Milan, Italy
[3] Analyt Bocconi Univ, Bocconi Inst Data Sci, I-20136 Milan, Italy
来源：
FINANCE RESEARCH LETTERS | 2023年 / 52卷
关键词：
Covid-19; Earnings announcements; Investor uncertainty; Accounting conservatism; Abnormal volatility; ANNOUNCEMENT DRIFT; INFORMATION;
D O I：
10.1016/j.frl.2022.103504
中图分类号：
F8 [财政、金融];
学科分类号：
0202 ;
摘要：
We examine how investors interpreted earnings news when the Covid-19 pandemic began. We argue the pandemic made investors unsure about the earnings news' reliability and valuation implications. We compare earnings announcements in early 2020 to those between 2015 and 2019. During Covid, earnings news significantly increased (decreased) post-announcement abnormal volatility (returns), consistent with investors' struggling to price the news. However, we find that Covid did not have such an effect on firms that had priorly established a reputation for conservative accounting. This suggests that conservatism, whose information effects have been debated by prior literature, alleviated investors' concerns during the pandemic.
引用
收藏
页数：7
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