Curbing Enthusiasm: Media Sentiment and the Disciplining Role of Quarterly Earnings Announcements Academic Article

abstract

• ABSTRACT A longstanding literature suggests that earnings provide the market with relevant information about firm performance, but one often overlooked benefit is their role in disciplining market expectations. This study examines the role of earnings announcements in constraining potential mispricing associated with firm-specific media sentiment. We show that media sentiment-driven quarterly returns (orthogonal to risk factors and fundamental news) largely reverse when public earnings are released. Our results suggest that quarterly earnings announcements play an important role in reducing media sentiment-related mispricing. Data Availability: Data are available from the public sources cited in the text. JEL Classifications: G14; L82; M41.

authors

• Twedt, Brady

published proceedings

• The Accounting Review

author list (cited authors)

• Holzman, E. R., Miller, B. P., & Twedt, B. J.

citation count

• 1

complete list of authors

• Holzman, Eric R||Miller, Brian P||Twedt, Brady J

publication date

• November 2023

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

Digital Object Identifier (DOI)

• 10.2308/tar-2020-0104

start page

• 1

end page

• 31

URL

• http://dx.doi.org/10.2308/tar-2020-0104