The Hidden Strategy Behind Earnings Announcements & FOMC Meetings | Dr. Xu Jiang

Dr. Xu Jiang, Associate Professor of Business Administration at Duke University's Fuqua School of Business, focuses his research on banking regulation, optimal disclosure policies, accounting standards, and strategic communication. Inspired by real-world observations of companies delaying their scheduled earnings calls to coincide with Federal Reserve meetings, Dr. Jiang co-authored an original study investigating why firms and analysts cluster earnings announcements and forecasts around FOMC dates. His research reveals a strategic cost-sharing dynamic where both parties delay announcements to leverage macro-level monetary policy insights, resulting in significantly higher analyst forecast accuracy, lower bid-ask spreads, and improved firm investment efficiency, effects that are particularly pronounced for high-beta, large firms and during periods of high economic policy uncertainty. Comparing various macroeconomic events, the research highlights that FOMC meetings and Non-Farm Payroll reports exert a much stronger influence on forecast accuracy than FOMC minutes. While these self-interested timing choices maximize overall information efficiency, Dr. Jiang notes potential regulatory implications, suggesting standard-setters consider requiring firms to explain schedule deviations to protect retail investors from post-FOMC information overload. This podcast is brought to you by Global Management Consultancy. Disclaimer: 1. The background music incorporated in this video is the intellectual property of its respective developer and is protected under applicable copyright laws. Notwithstanding that it is a free-to-use version, Business Talk, Global Management Consultancy, and Deepak Bhatt do not own, and expressly do not claim, any rights, title, or interest in or to this music. 2. Dr. Xu Jiang shared key insights from his research, “Dancing to the Fed’s Tune: Earnings Announcement Clustering and Analyst Forecast Informativeness Around FOMC Meetings”, in an engaging episode of the Business Talk podcast. The uploaded video contains copyrighted content, so changing any graphics, music, or on-screen appearance of the author or host is not allowed.