The usefulness to individual and institutional investors of annual earnings announcements and SEC filings by non-U.S. companies


This study examines the information contained in annual earnings announcements and SEC filings by non-U.S. and non-Canadian companies listed on either the New York or American Stock Exchange. We extend previous research in this area by employing intraday trading data, which allows us to assess the relative informativeness of the earnings announcements and SEC filings across different classes of investors. In addition, analyzing trading data is advantageous in that abnormal trading volume on a U.S. exchange can reasonably be attributed to the usefulness of the information to U.S. traders. The results suggest that annual earnings announcements of non-U.S. companies provide information to both institutional and individual investors, as indicated by the abnormal trading activity surrounding this event, but the value of the information is greater and the time required to process the information is less for institutional investors. With respect to the SEC annual filings, abnormal trading activity was not detected surrounding the filing dates for the entire sample period (1983-1992) for either institutional or individual investors. We do, however, document some evidence that the information content of the 20-F has increased in post-1988 filings, which corresponds with a dramatic rise in the market value of non-U.S. equity securities listed in the U.S. market. © 1999 Cognitive Science Society, Inc.

Publication Title

Journal of International Accounting, Auditing and Taxation