The Effect of Timeliness and Credit Ratings on the Information Content of Earnings Announcements

References

• Alves, Carlos, and Texeira Dos Santos. 2008. Do First and Third Quarter Unaudited Financial Reports Matter? The Portuguese Case. European Accounting Review 17 (2): 361–392.
   Web of Science ®Google Scholar
• Aman, Hiroyuki, and Pascal Nguyen. 2013. Does Good Governance Matter to Debtholders? Evidence from the Credit Rating of Japanese Firms. Research in International Business and Finance 29: 14–34.
   Google Scholar
• Amihud, Yakov, and Kefei Li. 2002. The Declining Information Content of Dividend Announcements and the Effect of Institutional Holdings. Working paper, New York University.
   Google Scholar
• An, Heng, and Kam Chan. 2008. Credit Ratings and IPO Pricing. Journal of Corporate Finance 14 (5): 584–595.
   Web of Science ®Google Scholar
• Bartholdy, Jan, Dennis Olson, and Paula Peare. 2007. Conducting event studies on a small stock exchange. European Journal of Finance 13 (3): 227–252.
   Google Scholar
• Ball, Ray, and Phillip Brown. 1968. An Empirical Evaluation of accounting Income Numbers. Journal of Accounting Research 6 (2): 159–178.
   Web of Science ®Google Scholar
• Beaver, William. 1968. The Information Content of annual Earnings Announcements. Journal of Accounting Research 6: 67–92.
   Web of Science ®Google Scholar
• Begley, Joy, and Paul Fischer. 1998. Is There Information in Earnings announcement Delay? Review of Accounting Studies 3 (4): 347–363.
   Google Scholar
• Benmelech, Efraim, and Jennifer Dlugosz. 2009. The Alchemy of CDO Credit Ratings. Journal of Monetary Economics 56 (5): 617–634.
   Web of Science ®Google Scholar
• Boot, Arnout, Todd Milbourn, and Anjolein Schmeits. 2006. Credit Ratings as Coordination Mechanisms. Review of Financial Studies 19 (1): 81–118.
   Web of Science ®Google Scholar
• Borrus, Amy. 2002. The Credit-Raters: How They Work and How They \Might Work Better. Business Week, April 8: 38–40.
   Google Scholar
• Bosch, Oliver, and Sascha Steffen. 2011. On Syndicate Composition, Corporate Structure and the Certification Effect of Credit Ratings. Journal of Banking and Finance 35 (2): 290–299.
   Web of Science ®Google Scholar
• Bowen, Robert, Marilyn Johnson, Terry Shelvin, and David Shores. 1992. Determinants of the Timing of Quarterly Earnings Announcements. Journal of Accounting, Auditing and Finance 7 (4): 395–422.
   Google Scholar
• Brown, Steven, and Jerold Warner. 1985. Using Daily Stock Return: The Case of Event Studies. Journal of Financial Economics 14 (1): 3–31.
   Web of Science ®Google Scholar
• Burns, Natasha, and Simi Kedia. 2006. The Impact of Performance-Based Compensation on Misreporting. Journal of Financial Economics 79 (1): 35–67.
   Web of Science ®Google Scholar
• Caramanis, Constantinos, and Clive Lennox. 2008. Audit Effort and Earnings Management. Journal of Accounting and Economics 45 (1): 116–138.
   Web of Science ®Google Scholar
• Chambers, Anne, and Stephen Penman. 1984. Timeliness of Reporting and the Stock Price Reaction to Earnings Announcements. Journal of Accounting Research 22 (1): 21–47.
   Web of Science ®Google Scholar
• Chen, Gongmeng, Louis Cheng, and Ning Gao. 2005. Information Content and Timing of Earnings Announcements. Journal of Business, Finance and Accounting 32 (1&2): 65–95.
   Web of Science ®Google Scholar
• Cheng, Qiang, and Terry Warfield. 2005. Equity Incentives and Earnings Management. The Accounting Review 80 (2): 441–476.
   Web of Science ®Google Scholar
• Chou, Ting-Kai. 2013. Information Content Ratings in Pricing of Future Earnings. Review of Quantitative Finance and Accounting 40 (2): 217–250.
   Google Scholar
• Christensen, Hans Bonde, Luzi Hail, and Christian Leuz. 2012. Mandatory IFRS Reporting and Changes in Enforcement. Working paper, The University of Chicago, Booth School of Business.
   Google Scholar
• Chung, Dennis, and Jason Lee. 1998. Ownership structure and trading volume reaction to earnings announcements: Evidence from Japan. Pacific-Basin Finance Journal 6 (1&2): 45–60.
   Google Scholar
• Chung, Dennis, and Jason Lee. 2002. Ownership Structure and Trading Volume Reaction to Earnings Announcements: Evidence from Japan. Pacific-Basin Finance Journal 6 (1&2): 29–48.
   Google Scholar
• Crabtree, Aaron, and Thomas Kubick. 2014. Corporate Tax Avoidance and the Timeliness of Annual Earnings Announcements. Review of Quantitative Finance and Accounting 42 (1): 51–67.
   Google Scholar
• DeBoskey, David, and Peter Gillett. 2013. The Impact of Multi-Dimensional Corporate Transparency on US Firms’ Credit Ratings and Cost of Capital. Review of Quantitative Finance and Accounting 40 (1): 101–134.
   Google Scholar
• Dichev, Ilia, and Joseph Piotroski. 2001. The Long-Run Returns Following Bond Ratings Changes. Journal of Finance 56 (1): 173–203.
   Web of Science ®Google Scholar
• Doyle, Jeffrey, and Matthew Magilke. 2009. The Timing of Earnings Announcements: An Examination of the Strategic Disclosure Hypothesis. The Accounting Review 84 (1): 157–182.
   Web of Science ®Google Scholar
• Dye, Ronald, and Sri Sridhar. 1995. Industry-Wide Disclosure Dynamics. Journal of Accounting Research 33 (1): 157–174.
   Web of Science ®Google Scholar
• Economou, Fotini, Alexandros Kostakis, and Nikolaos Phillipas. 2011. Cross-Country Effects in Herding Behavior. Evidence from Four South European Markets. Journal of International Financial Markets, Institutions and Money 21 (3): 443–460.
   Web of Science ®Google Scholar
• Ederington, Louis, Jess Yawitz, and Brian Roberts. 1987. The informational content of bond ratings. Journal of Financial Research 10 (3): 211–226.
   Google Scholar
• Ederington, Louis, and Jeremy Goh. 1998. Bond Rating Agencies and Stock Analysts: Who Knows What When. Journal of Financial and Quantitative Analysis 33 (4): 569–585.
   Web of Science ®Google Scholar
• Epstein, Barry, and Eva Jermakowicz. 2007. IFRS 2007 – Interpretation and Application of International Financial Reporting Standards. New Jersey: Wiley.
   Google Scholar
• Fama, Eugene, and James MacBeth. 1973. Risk, Return, and Equilibrium: Empirical Tests. Journal of Political Economy 81 (3): 607–636.
   Web of Science ®Google Scholar
• Faulkender, Michael, and Mitchell Petersen. 2006. Does the Source of Capital Affect Capital Structure? Review of Financial Studies 19 (1): 45–79.
   Web of Science ®Google Scholar
• Garcia-Osma, Beatrice, and Peter Pope. 2011. Strategic Balance Sheet Adjustments Under First-Time IFRS Adoption and the Consequences for Earnings Quality. Working paper, Lancaster University.
   Google Scholar
• Goh, Jeremy, and Louis Ederington. 1993. Is a Bond Rating Downgrade Bad News, Good News, or No News for Stockholders? Journal of Finance 48 (5): 2001–2008.
   Web of Science ®Google Scholar
• Griffin, Paul, and Antonio Sanvicente. 1982. Common Stock Returns and Rating Changes: A Methodological Comparison. Journal of Finance 37 (1): 103–119.
   Web of Science ®Google Scholar
• Hand, John, Robert Holthausen, and Richard Leftwich. 1992. The Effect of Bond Rating Agency Announcements on Bond and Stock Prices. Journal of Finance 47 (2): 733–752.
   Web of Science ®Google Scholar
• Haw, In-Mu, Daqing Qi, and Woody Wu. 2000. Timeliness of Annual Report Releases and Market Reaction to Earnings announcements in an Emerging Capital Market: The Case of China. Journal of International Financial Management and Accounting 11 (2): 108–131.
   Google Scholar
• Holthausen, Robert, and Richard Leftwich. 1986. The Effect of Bond Rating Changes on Common Stock Prices. Journal of Financial Economics 17 (1): 57–89.
   Web of Science ®Google Scholar
• Jiang, John. 2008. Beating Earnings Benchmarks and the Cost of Debt. The Accounting Review 83 (2): 377–416.
   Web of Science ®Google Scholar
• Jorion, Philippe, Zhu Liu, and Charles Shi. 2005. Informational Effects of Regulation FD: Evidence from Rating Aagencies. Journal of Financial Economics 76 (2): 309–330.
   Web of Science ®Google Scholar
• Jorion, Philippe, Charles Shi, and Sanjian Zhang. 2009. Tightening Credit Standards: The Role of Accounting Quality. Review of Accounting Studies 14 (1): 123–160.
   Web of Science ®Google Scholar
• Kaplan, Steven, and Luigi Zingales. 1997. Do Investment-Cash Flow Sensitivities Provide Useful Measures of Financing Constraints? Quarterly Journal of Economics 112 (1): 169–215.
   Web of Science ®Google Scholar
• Kim, Jeong-Bon, Itzhak Krinsky, and Jason Lee. 1997. Institutional Holdings and Trading Volume Reactions to Quarterly Earnings Announcements. Journal of Accounting, Auditing and Finance 12 (1): 1–14.
   Google Scholar
• Kisgen, Doron. 2006. Credit Ratings and Capital Structure. Journal of Finance 61 (3): 1035–1072.
   Web of Science ®Google Scholar
• Kisgen, Doron. 2007. The Influence of Credit Ratings on Corporate Capital Structure Decisions. Journal of Applied Corporate Finance 19 (3): 65–73.
   Google Scholar
• Kisgen, Doron. 2009. Do Firms Target Credit Ratings or Leverage Levels? Journal of Financial and Quantitative Analysis 44 (6): 1323–1344.
   Web of Science ®Google Scholar
• Kliger, Doron, and Oded Sarig. 2000. The Information Value of Bond Ratings. Journal of Finance 55 (6): 2879–2902.
   Web of Science ®Google Scholar
• Kothari, S. P., Susan Shu, and Peter Wysocki. 2009. Do Managers Withhold Bad News? Journal of Accounting Research 47 (1): 241–276.
   Web of Science ®Google Scholar
• Kross, William. 1981. Earnings Announcement and Time Lag. Journal of Business Research 9 (3): 267–281.
   Web of Science ®Google Scholar
• Kross, William. 1982. Profitability, Earnings announcement Time Lags, and Stock Prices. Journal of Business Finance and Accounting 9 (3): 313–328.
   Google Scholar
• Laurie, Arlene, and Victor Pastena. 1975. How Promptly Do Corporations Disclose Their Problems? Financial Analysts Journal 31 (5): 55–61.
   Google Scholar
• Leuz, Christian, Dhananjay Nanda, and Peter Wysocki. 2003. Earnings Management and Investor Protection: An International Comparison. Journal of Financial Economics 69 (3): 505–527.
   Web of Science ®Google Scholar
• Leventis, Stergios, and Pauline Weetman. 2004. Timeliness of Financial Reporting: Applicability of Disclosure Theories in an Emerging Capital Market. Accounting and Business Research 34 (1): 43–56.
   Google Scholar
• Liu, Yang, and Paul Malatesta. 2006. Credit Ratings and the Pricing of Seasoned Equity Offerings. Working paper, University of Washington.
   Google Scholar
• Mackenzie Michael. 2012. Non-Profit Credit Rating Agency Challenge. Financial Times, April 16. Available from http://www.ft.com/intl/cms/s/0/302e5b38-84ab-11e1-b6f5-00144feab49a.html#axzz39oTDO8BH
   Google Scholar
• Mariano, Beatriz. 2012. Market Power and Reputational Concerns in the Ratings Industry. Journal of Banking and Finance 36 (6): 1616–1626.
   Web of Science ®Google Scholar
• Megginson, William, and Kathleen Weiss. 1991. Venture Capitalist Certification in Initial Public Offerings. Journal of Finance 46 (3): 879–903.
   Web of Science ®Google Scholar
• Owusu-Ansah, Stephen. 2000. Timelines of Corporate Financial Reporting in Emerging Capital Markets: Empirical Evidence from the Zimbabwe Stock Exchange. Accounting and Business Research 30 (3): 241–254.
   Google Scholar
• Pastena, Victor, and Joshua Ronen. 1979. Some Hypotheses on the Pattern of Management’s Informal Disclosures. Journal of Accounting Research 17 (2): 550–564.
   Web of Science ®Google Scholar
• Patell, James, and Mark Wolfson. 1982. Good News, Bad News, and the Intraday Timing of Corporate Disclosures. Accounting Review 57 (3): 509–527.
   Web of Science ®Google Scholar
• Sufi, Amir. 2009. Bank Lines of Credit in Corporate Finance: An Empirical Analysis. Review of Financial Studies 22 (3): 1057–1088.
   Web of Science ®Google Scholar
• Tang, Tony. 2009. Information Asymmetry and Firms’ Credit Market Access: Evidence from Moody’s Credit Rating Format Refinement. Journal of Financial Economics 93 (2): 325–351.
   Web of Science ®Google Scholar
• Tzovas, Christos. 2006. Factors Influencing a Firm’s Accounting Policy Decisions When Tax Accounting and Financial Accounting Coincide. Managerial Auditing Journal 21 (4): 372–386.
   Google Scholar
• Verrecchia, Robert. 1983. Discretionary Disclosure. Journal of Accounting and Economics 5: 179–194.
   Web of Science ®Google Scholar
• Watts, Ross, and Jerold Zimmerman. 1978. Toward a Positive Theory of the Determination of Accounting Standards. Accounting Review 53 (1): 131–156.
   Google Scholar
• White, Halbert. 1980. A Heteroscedasticity Consistent Covariance Matrix Estimator and a Direct Test of Heteroscedasticity. Econometrica 48 (4): 817–838.
   Web of Science ®Google Scholar
• White, Lawrence. 2002. The Credit Rating Industry: An Industrial Organization Analysis. In: Levich, Richard, Giovanni Majnoni, and Carmen Reinhart (Eds.). Ratings, Rating Agencies and the Global Financial System: 41–63, Kluwer Academic Publishers: Boston.
   Google Scholar
• Whited, Toni. 1992. Debt, Liquidity Constraints, and Corporate Investment: Evidence from Panel Data. Journal of Finance 47 (4): 1425–1460.
   Web of Science ®Google Scholar
• Yi, Ha-Chin, and Donald Mullineaux. 2006. The Informational Role of Bank Loan Ratings. Journal of Financial Research 29 (4): 481–501.
   Google Scholar