Financial Reporting and Consumer Behavior (Noh et al., 2024)

Welcome to Revise and Resubmit. Today, we’ll uncover the unexpected link between financial reports and consumer behavior, through the lens of Suzie Noh, Eric C. So, and Christina Zhu’s article, "Financial Reporting and Consumer Behavior," published in The Accounting Review by the American Accounting Association. Picture this: a company releases its earnings report. It’s not just investors who are paying attention—shoppers are, too. In this study, the authors analyze GPS data and find something fascinating: after earnings announcements, foot traffic to stores actually increases. And it’s not just any announcement that gets attention. The reports that cause the biggest spikes are those with lots of media coverage, internet buzz, and surprising stock movements. Consumers, it seems, are paying attention to companies’ financial health—and they’re responding, especially when the company sells durable goods. So here’s the question: Could financial reporting be a hidden tool in the marketer’s toolbox, drawing customers to stores in a way we never expected? Stay with us as we explore how numbers on a spreadsheet might be influencing the choices consumers make in the real world. A special thank you to Suzie Noh, Eric C. So, Christina Zhu, and The Accounting Review for bringing us this eye-opening research. Let’s dive in! Reference Noh, S., So, E. C., & Zhu, C. (2024). Financial reporting and consumer behavior. The Accounting Review. https://doi.org/10.1002/smj.3664