Intra-industry information transfers: Evidence from earnings announcements


I examine the role of product market relations in information assimilation surrounding corporate earnings announcements. I provide evidence that intra-industry information transfers measured by industry rival earnings announcements account for a substantial portion of the well documented post-earnings announcement drift. While this evidence appears to be most consistent with rational structural uncertainty [Brav and Heaton (2002)] one cannot rule out the possibility of behavioral biases.

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@inproceedings{Kovcs2006IntraindustryIT, title={Intra-industry information transfers: Evidence from earnings announcements}, author={Tunde Kov{\'a}cs}, year={2006} }