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Journal

California State University, San Bernardino

Accounting

Earnings Surprises

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Full-Text Articles in Business

Perceive It Or Not: Information Quality And The Investors’ Response To Earning Surprises Of Technologically Advanced Companies, Aliza Rotenstein, David Gelb, Abraham Fried, Shoshana Altschuller Jan 2021

Perceive It Or Not: Information Quality And The Investors’ Response To Earning Surprises Of Technologically Advanced Companies, Aliza Rotenstein, David Gelb, Abraham Fried, Shoshana Altschuller

Journal of International Technology and Information Management

One of the primary measures of information systems (IS) success that has been the subject of much investigation in a variety of contexts is information quality (DeLone & McLean, 1992; 2003). This paper hones in on the impact of perceived information quality in the context of the financial markets, where quality of accounting information is particularly important, as it informs investment decisions and impacts stock prices. In particular, seminal accounting research has consistently found that earnings announcements possess informational value (information content) based upon which the market reacts (Beaver, 1968). Market reaction to surprises in earnings announcements has long been …