Indian Journal of Finance

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Re-Examining the Operating Performance of China's Listed Companies with Unexpected Earnings Disclosure


Affiliations
1 Department of Risk Management & Insurance, National Kaohsiung First University of Science and Technology, Taiwan, Province of China
2 Ph.D Program Student, Institute of Management, Kaohsiung First University of Science & Technology, Taiwan, Province of China
3 Master Student, Department of Risk Management & Insurance, National Kaohsiung First University of Science & Technology, Taiwan, Province of China

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The unexpected earnings disclosure could be important indicator for investors while making their decisions and investors will get closely to understand China's target companies' operating performance. China's disorder stock market could be solid into the asymmetry information between holding shareholders and small investors, and entrepreneurship disappears when operating dilemma comes up progressively. Most of operators tend to delay the announcement of bad news about earning reports, and consequently overslip the timeliness of annual earnings disclosure. Therefore, this study applied the panel data regression with fixed effect to analyze the impact of net income on five forces of financial indices (Profitability; Productivity; Activity; Growth; Stability) with earnings disclosure. The result showed that unexpected earnings news could provide more significance than traditional financial indices.
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  • Re-Examining the Operating Performance of China's Listed Companies with Unexpected Earnings Disclosure

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Authors

Pai-Lung Chou
Department of Risk Management & Insurance, National Kaohsiung First University of Science and Technology, Taiwan, Province of China
Tsung-Li Chi
Ph.D Program Student, Institute of Management, Kaohsiung First University of Science & Technology, Taiwan, Province of China
Jia-Jun Lin
Master Student, Department of Risk Management & Insurance, National Kaohsiung First University of Science & Technology, Taiwan, Province of China

Abstract


The unexpected earnings disclosure could be important indicator for investors while making their decisions and investors will get closely to understand China's target companies' operating performance. China's disorder stock market could be solid into the asymmetry information between holding shareholders and small investors, and entrepreneurship disappears when operating dilemma comes up progressively. Most of operators tend to delay the announcement of bad news about earning reports, and consequently overslip the timeliness of annual earnings disclosure. Therefore, this study applied the panel data regression with fixed effect to analyze the impact of net income on five forces of financial indices (Profitability; Productivity; Activity; Growth; Stability) with earnings disclosure. The result showed that unexpected earnings news could provide more significance than traditional financial indices.