The Effects of Uncertainty on the Informativeness of Earnings: Evidence from the Insurance Industry in the Wake of Catastrophic Events
研究大型巨灾带来的不确定性如何影响财产险和意外险公司盈余公告的信息含量，发现巨灾损失相关的不确定性显著增强了市场对盈余报告的反应，表明高不确定性时期投资者更依赖盈余信息评估公司前景。
This study examines the effects of uncertainty associated with large‐scale catastrophes on the informativeness of earnings announcements by property and casualty insurers. It contributes to the literature on the effects of uncertainty on the informativeness of earnings announcements by distinguishing between: (1) uncertainty due to exogenous events that obscure the firm’s future prospects, and (2) uncertainty due to noise in earnings. Results suggest that heightened uncertainty associated with exposure to catastrophe losses is significantly positively associated with the market’s response to earnings reports, even after controlling for uncertainty due to noise in earnings. This implies that during periods of high uncertainty, investors find earnings information more useful in assessing the future prospects of the firm.