Abstract
This study investigates the relationship between firms' business strategy and intra-industry information transfers associated with earnings announcements. Based on Bentley et al. (2013), I classify business strategy into three types (defender, prospector, and analyzer) and investigate whether the similarity and the type of business strategy pursued by the first- and lateannouncers affects the magnitude of intra-industry information transfers. I find that intra-industry information transfers are stronger when the first- and late- announcer pursue the same type of business strategies. I also find that even if the first- and late- announcer’s business strategies are the same type, information transfers are not observed when both pursue the innovation-oriented
prospector strategy. This study contributes to the literature by providing new evidence regarding the determinants of intra-industry information transfers associated with earnings announcements.
