Impact of Early or Late Monthly Earnings Announcement on Stock Performance

[[abstract]]Earnings of previous month no later than 10th of current month, and the value of this information is widely studied in the literature. However, previous studies on information effects lack of real announcement dates and mostly adopt regulated announcement dates as event days. Because Taiwan Economic Journal provides “real announcement dates” of earnings since 2013, this paper re-examines the information content of monthly earning announcement and investigates the significant difference Listed companies in Taiwan are regulated to announce monthly of abnormal returns between early-announced and late-announced firms. Our sample consists of all listed companies covering from 2013 to 2015. The finding shows that 7 industries exhibit negative cumulative abnormal returns in 5 days after earning announcements. In addition, both early-announced and late-announced firms have negative 5-day cumulative abnormal returns and cumulative abnormal returns of early -announced companies are significantly lower than those of late -announced companies about 0.13% on average. Lastly, if unexpected earnings are positive, earlier announcements cause worse stock performance. However, if unexpected earnings are negative, earlier announcements also lead to lower cumulative stock returns