The Media and Mispricing: The Role of the Business Press in the Pricing of Accounting Information Academic Article

abstract

• ABSTRACTThis study investigates the role of the business press in the pricing of accounting information. Using a comprehensive dataset of more than 111,000 earnings-related business press articles published from 2000 to 2010, we find that press coverage of the annual earnings announcement mitigates cash flow mispricing, but has a negligible effect on accrual mispricing. We provide evidence that this impact is driven primarily by the press disseminating the information more broadly, rather than by the creation of new content that helps investors understand the implications of accounting information. Our results suggest that the business press plays an important role in facilitating the market's ability to efficiently impound accounting information into stock prices and provide new insights into the role of the business press as an information intermediary in capital markets.

authors

• Twedt, Brady

published proceedings

• The Accounting Review

author list (cited authors)

• Drake, M. S., Guest, N. M., & Twedt, B.

citation count

• 274

complete list of authors

• Drake, Michael S||Guest, Nicholas M||Twedt, Brady

publication date

• September 2014

publisher

• American Accounting Association  Publisher

published in

• Accounting Review  Journal

keywords

• 35 Commerce, Management, Tourism And Services
• 3501 Accounting, Auditing And Accountability
• 3502 Banking, Finance And Investment
• 3507 Strategy, Management And Organisational Behaviour

Digital Object Identifier (DOI)

• 10.2308/accr-50757

start page

• 1673

end page

• 1701

volume

• 89

issue

• 5

URL

• http://dx.doi.org/10.2308/accr-50757