Intra-industry information releases

Information Transfers among Group-Affiliated Firms

“…Prior research on information transfer provides evidence consistent with a positive relation between the unsystematic stock returns of announcing and non-announcing firms at earnings releases ( Foster, 1981;Clinch and Sinclair, 1987;Baginski, 1987Baginski, , 1989Freeman, R. N. and Tse, S.,1992;Han et al, 1989;Han and Wild, 1990;Pownall and Waymire, 1989;Pyo and Lustgarten, 1990). Those results suggest that news releases of other firms within an industry are used in the determination of a given firm's security price.…”

Who are the Stakeholders Now? An Empirical Examination of the Mitchell, Agle, and Wood Theory of Stakeholder Salience

“…ESM assumes markets react quickly to new information by rapidly adjusting to an equilibrium level that incorporates the market's revised view of the risk/return trade-off (Fama et al, 1969;MacKinlay, 1997). Inherent in this methodology is the assumption that an accident, which directly affects only one company, will trigger intra-industry information transfers though the capital markets, thereby affecting the shares of other companies (Clinch and Sinclair, 1987). Since the operating risks faced by one company are common to others in the industry, an accident could precipitate tighter government regulation that will affect all companies in that industry.…”

Within-industry timing of earnings warnings: do managers herd?

“…A firm's earnings forecast conveys information that affects nonforecasting industry peers' returns (Baginski 1987;Han et al 1989). Early earnings announcements affect the stock returns of late announcers in the industry (Foster 1981;Clinch and Sinclair 1987;Han and Wild 1990;Freeman and Tse 1992;Lang and Lundholm 1996b). The major difference between managerial herding and information transfer is that the former focuses on managers' decisions in a multi-firm setting, whereas the latter focuses on investors' inferences in a multifirm setting.…”