Do Investors Delay Their Responses to Earnings? An Investigation of the Interdependence of the Information Content of Earnings Announcements and SEC Filings

This paper presents a two-period trading model in the setting of sequential events - earnings announcements and the SEC filings of financial statements. The model indicates that some earlier informed investors rationally delay their trades until the filings. It suggests that earnings announcements and the SEC filings should be investigated as interdependent events and that the relative information content of the two events depends on the...