The Usefulness to Individual and Institutional Investors of Annual Earnings Announcements and Sec Filings by Non-U.S. Companies

Posted: 24 Feb 1997

See all articles by Edwin R. Etter

Edwin R. Etter

Syracuse University - Whitman School of Management

Lynn L. Rees

Utah State University - School of Accountancy; Utah State University - Huntsman School of Business

James Lukawitz

University of Memphis - Fogelman College of Business and Economics

Date Written: January 1997

Abstract

This study examines the usefulness and the speed in processing of annual earnings announcements and SEC filings by non-U.S. companies listed on either the New York or American Stock Exchange. Intraday trading data and a methodology developed in Cready (1988) and Cready and Mynatt (1991) are utilized to determine if the above characteristics are related to investor wealth. The results indicate that annual earnings announcements of non-U.S. companies are useful to both institutional and individual investors. With respect to the SEC filings, no unexpected trading activity was detected surrounding the filing dates for the entire sample period (1983-1992) for either institutional or individual investors. However, when the sample was restricted to post-1988 filings, which corresponds to a dramatic rise in the market value of non-U.S. equity securities listed in the U.S., the information in the SEC filings was found to be useful to both institutional and individual investors. Finally, for both the earnings announcements and the post-1988 SEC filings, institutional investors appear to process the information more quickly than do individual investors, and the value of the the information increases with investor wealth.

JEL Classification: M41, K22

Suggested Citation

Etter, Edwin R. and Rees, Lynn L. and Lukawitz, James, The Usefulness to Individual and Institutional Investors of Annual Earnings Announcements and Sec Filings by Non-U.S. Companies (January 1997). Available at SSRN: https://ssrn.com/abstract=2893

Edwin R. Etter (Contact Author)

Syracuse University - Whitman School of Management ( email )

721 University Avenue
Syracuse, NY 13244-2130
United States
315-443-3357 (Phone)
315-443-5457 (Fax)

Lynn L. Rees

Utah State University - School of Accountancy ( email )

College of Business
Logan, UT 84322-3540
United States

Utah State University - Huntsman School of Business ( email )

3500 Old Main Hill
Logan, UT 84322-3500
United States
435-797-2272 (Phone)

James Lukawitz

University of Memphis - Fogelman College of Business and Economics ( email )

Memphis, TN 38152
United States

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