Study finds when companies announce earnings surprises, locals reach for their pocketbooks

Corporate earnings announcements are more than just powerful signals to those in the know. After all, it might be expected that sophisticated investors and employees of public companies closely watch news that directly affects their personal wealth. But surprising news about corporate earnings also affects the communities that surround a company, three Stanford Graduate School of Business accounting professors find in a new paper. Corporate earnings announcements are more than just powerful signals to those in the know. After all, it might be expected that sophisticated investors and employees of public companies closely watch news that directly affects their personal wealth. But surprising news about corporate earnings also affects the communities that surround a company, three Stanford Graduate School of Business accounting professors find in a new paper. Economics & Business Phys.org – latest science and technology news stories