Competing Information and Attention Allocation: Evidence from China

This paper investigate the investor attraction hypothesis by examining how the number of earnings by other firms affects the sensitivity of a firm´s announcement-period return, and post-event return reaction to its earnings surprise. The evidence indicates that the immediate stock price reaction to a firm´s earnings surprise is weaker, and post-earnings announcement drift is weaker, when a greater number of earnings announcements by other firms are made on the same day. These findings generally support the investor attraction hypothesis.