Title
The transmission of corporate financial information across national borders and equity market linkages
Document Type
Journal article
Source Publication
Review of Accounting Studies
Publication Date
12-1-1996
Volume
1
Issue
4
First Page
309
Last Page
337
Keywords
Spillover effects
Abstract
Although intra-industry earnings information transfers have been documented within individual nations, little or no attention has been given to examining whether these transfers also exist across national boundaries. This study sets out to investigate the issue by analyzing the abnormal stock market returns of British firms at the time of annual earnings announcements by U.S. corporations and the returns of U.S. firms at the time of profit announcements by British companies. Information transfers are also tested by examining whether earnings surprises of companies in one country are related to revisions in investment analysts' consensus profit forecasts of non-reporting firms in the other country. The accuracies of revisions in consensus earnings estimates an investigated. Evidence of transnational information transfers from the United States to Britain is found and the degree and level of the signal is related to various firm and industry characteristics including correlations in reported profits.
DOI
10.1007/BF00570835
Print ISSN
13806653
E-ISSN
15737136
Publisher Statement
Copyright © 1996 Kluwer Academic Publishers, Boston
Access to external full text or publisher's version may require subscription.
Full-text Version
Publisher’s Version
Language
English
Recommended Citation
Firth, M. (1996). The transmission of corporate financial information across national borders and equity market linkages. Review of Accounting Studies, 1(4), 309-337. doi: 10.1007/BF00570835
