Miescu, Mirela S. and Mumtaz, Haroon (2024) CORPORATE EARNINGS ANNOUNCEMENTS AND ECONOMIC ACTIVITY. International Economic Review. ISSN 0020-6598
Full text not available from this repository.Abstract
Are corporate earnings (CE) announcements important for economic activity? We address this question using a novel identification method that combines the valuable information from CE announcements with the heteroscedasticity of shocks experienced on these particular days. Our results demonstrate that CE announcements have a significant impact on the macroeconomy, exhibiting dynamics similar to traditional financial disruptions. We establish that CE announcements' shocks can be classified as financial shocks, highlighting their critical role in the financial system.