Lessons from previous crises can shed light on the business and economic impact of COVID-19 and help guide investors’ and companies’ responses. CRA’s earlier research on earnings delays is especially relevant today as several companies are voluntarily delaying earnings and the SEC and FCA have extended disclosure deadlines. Our CRA Insights summarizes research that presents empirical findings on frequency and causes for delays as well as investors’ reactions and the reasonings for companies’ decisions to delay or not. For a copy of the academic paper published later in the Journal of Applied Corporate Finance, please contact the author.
Leakage theory of loss causation and damages in securities litigation
Loss causation is typically established through the identification of corrective disclosures that are found to cause securities prices to decline, often in...