Do Firms Strategically Use Non-Earnings Press Releases

Jiwon Hyeon; Hyunkwon Cho; Joonil Lee

doi:10.1016/j.frl.2024.105258

Do Firms Strategically Use Non-Earnings Press Releases

Jiwon Hyeon, Hyunkwon Cho, Joonil Lee

Dept. of Business Administration

Research output: Contribution to journal › Article › peer-review

Abstract

This study examines the strategic use of non-earnings press releases (NEPR) by firms experiencing poor financial performances. Utilizing a dataset from Naver.com, we classify news originating from press releases by applying deep-learning techniques and find that firms issue more NEPR in the fourth quarter following poor performance in the first three quarters. Market reactions to NEPR vary based on previous performance, suggesting investors recognize firms' strategic intention of these releases. This study emphasizes the need for market participants to assess the motives behind NEPR, especially from poor performing firms.

Original language	English
Article number	105258
Journal	Finance Research Letters
Volume	63
DOIs	https://doi.org/10.1016/j.frl.2024.105258
State	Published - May 2024

Keywords

Disclosure
Fourth quarter reporting
Market response
Non-earnings press release
Strategic behavior

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10.1016/j.frl.2024.105258

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title = "Do Firms Strategically Use Non-Earnings Press Releases",

abstract = "This study examines the strategic use of non-earnings press releases (NEPR) by firms experiencing poor financial performances. Utilizing a dataset from Naver.com, we classify news originating from press releases by applying deep-learning techniques and find that firms issue more NEPR in the fourth quarter following poor performance in the first three quarters. Market reactions to NEPR vary based on previous performance, suggesting investors recognize firms' strategic intention of these releases. This study emphasizes the need for market participants to assess the motives behind NEPR, especially from poor performing firms.",

keywords = "Disclosure, Fourth quarter reporting, Market response, Non-earnings press release, Strategic behavior",

author = "Jiwon Hyeon and Hyunkwon Cho and Joonil Lee",

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language = "English",

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AU - Hyeon, Jiwon

AU - Cho, Hyunkwon

AU - Lee, Joonil

PY - 2024/5

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N2 - This study examines the strategic use of non-earnings press releases (NEPR) by firms experiencing poor financial performances. Utilizing a dataset from Naver.com, we classify news originating from press releases by applying deep-learning techniques and find that firms issue more NEPR in the fourth quarter following poor performance in the first three quarters. Market reactions to NEPR vary based on previous performance, suggesting investors recognize firms' strategic intention of these releases. This study emphasizes the need for market participants to assess the motives behind NEPR, especially from poor performing firms.

AB - This study examines the strategic use of non-earnings press releases (NEPR) by firms experiencing poor financial performances. Utilizing a dataset from Naver.com, we classify news originating from press releases by applying deep-learning techniques and find that firms issue more NEPR in the fourth quarter following poor performance in the first three quarters. Market reactions to NEPR vary based on previous performance, suggesting investors recognize firms' strategic intention of these releases. This study emphasizes the need for market participants to assess the motives behind NEPR, especially from poor performing firms.

KW - Disclosure

KW - Fourth quarter reporting

KW - Market response

KW - Non-earnings press release

KW - Strategic behavior

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SN - 1544-6123

VL - 63

JO - Finance Research Letters

JF - Finance Research Letters

M1 - 105258

ER -

Do Firms Strategically Use Non-Earnings Press Releases

Abstract

Keywords

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