Author : Ronen Feldman
Publisher :
ISBN 13 :
Total Pages : 53 pages
Book Rating : 4.:/5 (13 download)
Book Synopsis Market Reaction to Quantitative and Qualitative Order Backlog Disclosures by : Ronen Feldman
Download or read book Market Reaction to Quantitative and Qualitative Order Backlog Disclosures written by Ronen Feldman and published by . This book was released on 2018 with total page 53 pages. Available in PDF, EPUB and Kindle. Book excerpt: Information on Order Backlogs (OB) have long been sought after by analysts and practitioners as indicators of future sales, and in turn, of future earnings and stock returns. OB disclosures, though mandatory for annual reports, are voluntary for quarterly reports, and sometimes presented in preliminary earnings releases as a textual narration. We show that OB disclosures provide sales forecasting benefits to the users of financial statements and generate significant investor responses. Contributing to the existing literature, we study both annual and quarterly OB disclosures, and further distinguish between quantitative and qualitative OB disclosures in the quarterly filings. We investigate why managers make certain choices regarding the frequency and the format of OB disclosures. We show that both quantitative information on increases in OB and positive qualitative indications by management about the direction of OB, are associated with higher (incremental) immediate and drift returns.