What happens when companies announce an earnings delay?

What happens when companies announce an earnings delay?

Tiago Duarte-Silva
Financial Services

Earnings delay announcements, a potentially important factor in certain securities class actions, have not been empirically studied until now. This study demonstrates that delay announcements can result in a significant negative stock price reaction. However, evaluation of the facts and circumstances on a case-by-case basis will be required to assess the effect of a particular earnings delay on the issues of loss causation or damages.

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