A1484
Title: Why do firms prefer after-hours disclosure? Evidence from Japan
Authors: Huixing Jin - Tokyo Metropolitan University (Japan) [presenting]
Konari Uchida - Waseda university (Japan)
Abstract: The Tokyo Stock Exchange's extension of its closing time from 3:00 p.m. to 3:30 p.m. in November 2024 provides an opportunity to examine whether firms deliberately announce earnings after market close. The extension reduces the proportion of after-hours announcements by approximately 15\%, indicating that operational constraints significantly influence announcement timing. Importantly, about 40\% of firms announce earnings immediately after market close in both the pre- and post-extension periods, implying that many firms deliberately choose after-hours disclosure. Firms with more volatile Stock returns consistently make after-hours announcements around the trading hours extension. These consistent after-hours announcements are also associated with lower ownership by relationship-based shareholders. Moreover, these factors are related to the likelihood that firms choose after-hours announcements for all earnings releases during the sample period. Finally, the market-to-book ratio, particularly its misvaluation component, is positively associated with the likelihood of making after-hours announcements.
