This study examines the important issue of whether additional pieces of
information about the earnings’ characteristics (their quantitative
description and predicted earnings) can debias the prospect effect of
the earnings’ announcement. The prospect effect bias can be mitigated by
the availability of clear information and an integrated disclosure.
Additional information that is included with the previous information
will make the investors’ beliefs stronger  and it will debias any
psychological effects.This research confirms the prospect effect’s bias
that investors react more negatively when evaluating a company’s
performance after a negative earnings information disclosure rather than
react positively in evaluating the performance for a positive earnings
information disclosure. The results also show that when additional
pieces of information, such as a quantitative description and predicted
earnings are added, they can mitigate the prospect effect’s bias.
Additional information of predicted earnings as forward-looking oriented
information has a stronger debiasing effect than that of additional
information of a quantitative description as backward-looking oriented
information.