News: Seminari

Seminar by Eli Amir

Sala Seminari – Ist floor, Palazzo Levi Cases, Via del Santo 33 - 14.30

30.01.2018

Estimating the precision of information on earnings and non-earnings days, and its relation with the cost of equity capital

Seminar by Eli Amir, Tel Aviv University
co authored by Shai Levi

Using daily stock returns, we estimate the precision of information during earnings announcement and non-earnings days, and find that although the precision of information in daily stock returns increases during earnings announcement days, it explains less of the variation in expected stock returns than the precision of information on non-earnings days. Our findings suggest that the precision of earnings disclosures has a small effect on the cost of equity relative to the precision of information on other days of the year.