Abstract
In this paper, we show that work schedule is a key factor driving investor inattention to Friday earnings announcements using the introduction of the five-day workweek system in the financial sector of Korea in 2002 as a natural experiment. Our analyses show a stronger immediate response and a weaker delayed response to Friday news under the six-day workweek system. The trend was, however, reversed under the five-day workweek system. We also find out consistent evidence from the movement of trading volume. These findings demonstrate that the trade-off between weekend distraction and additional working hours during the weekend determines investors’ attention to Friday earnings announcements.
© 2017 city university of Hong Kong and national taiwan university
© 2017 city university of Hong Kong and national taiwan university
| Original language | English |
|---|---|
| Pages (from-to) | 419-432 |
| Number of pages | 14 |
| Journal | Asia-Pacific Journal of Accounting and Economics |
| Volume | 25 |
| Issue number | 3-4 |
| Online published | 6 Mar 2017 |
| DOIs | |
| Publication status | Published - 2018 |
| Externally published | Yes |
Bibliographical note
Publisher Copyright:© 2017 City University of Hong Kong and National Taiwan University.
Research Keywords
- earnings announcements
- Friday inattention
- Investor inattention
- investor reaction
- workweek system
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