Does Earnings Surprise Determine the Timing of the Earnings Announcement? Evidence from The Select Companies of Financial Sector in India
Abstract
This study examines the impact of earnings announcement timing on stock market reactions in the Indian financial sector, with a specific focus on the role of earnings surprises. Using an event study methodology, the research analyses quarterly earnings announcements of five major financial institutions—HDFC Bank Ltd., ICICI Bank Ltd., State Bank of India, Bajaj Finance Ltd., and Kotak Mahindra Bank Ltd.—over three financial years (FY 2022–23 to FY 2024–25). Abnormal returns are calculated within a 40-day event window (−20 to +20 days) to capture short-term market reactions. Further, a t-test is employed to compare market reactions for announcements made during trading hours versus after trading hours, while logistic regression is used to examine whether earnings surprises influence announcement timing decisions. The results reveal that although firms predominantly prefer after-hours disclosures, the difference in abnormal returns between during-hours and after-hours announcements is not statistically significant. However, descriptive patterns suggest that firms strategically use after-hours timing to manage investor reactions, particularly in the presence of earnings surprises. The study contributes to behavioural finance literature by providing recent empirical evidence from India’s financial sector and offers insights for managers, investors, and regulators regarding disclosure strategies and market efficiency.
Keywords
Earnings Announcements, Earnings Surprises, Event Study, Abnormal Returns, Disclosure Timing, Indian Financial Sector
Citations
IRE Journals:
Rohan Raj Poloju Sreeramulu "Does Earnings Surprise Determine the Timing of the Earnings Announcement? Evidence from The Select Companies of Financial Sector in India" Iconic Research And Engineering Journals Volume 9 Issue 8 2026 Page 27-29 https://doi.org/10.64388/IREV9I8-1714017
IEEE:
Rohan Raj Poloju Sreeramulu
"Does Earnings Surprise Determine the Timing of the Earnings Announcement? Evidence from The Select Companies of Financial Sector in India" Iconic Research And Engineering Journals, 9(8) https://doi.org/10.64388/IREV9I8-1714017
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