Periodicities of Earnings Announcements
Earnings announcements have distinct characteristics. The following charts show that there are periodicities to news announcements, particularly earnings announcements:
Based on data from Hirshleifer, Lim, and Teoh (2009).
The day-of-week chart above, for example, shows that companies have a clear preference for making earning announcements on Tuesday, Wednesday, and Thursday. Friday is the day most avoided.
Based on data from Hirshleifer, Lim, and Teoh (2009).
As the chart, above, shows, there is a clustering effect regarding the months of the year during which earnings announcements are made. This is mostly due to fiscal years that end with the traditional calendar year. The lowest number of earnings announcements are distinctly in June, September and December – perhaps good months to take vacations!
To be continued …
