Concurrent Earnings Announcements and Analysts' Information Production

ABSTRACT We examine whether financial analysts are subject to limited attention. We find that when analysts have another firm in their coverage portfolio announcing earnings on the same day as the sample firm (a “concurrent announcement”), they are less likely to issue timely earnings forecasts for the sample firm's subsequent quarter than analysts without a concurrent announcement. Among the analysts who issue timely earnings forecasts, the thoroughness of their work decreases as their number of concurrent announcements increases. In addition, analysts are more sluggish in providing stock recommendations and less likely to ask questions in earnings conference calls as their number of concurrent announcements increases. Moreover, when analysts face concurrent announcements, they tend to allocate their limited attention to firms that already have rich information environments, leaving behind firms in need of attention. Overall, our evidence suggests that even financial analysts, who serve as information specialists, are subject to limited attention. JEL Classifications: G10; G11; G17; G14. Data Availability: Data are publicly available from the sources identified in the paper.

Measuring Compliance With IFRS Mandatory Disclosure Requirements

This chapter examines Greek firms' compliance with IFRS mandatory disclosure requirements for the years 2006 and 2008. Using a checklist based on the IFRS disclosure requirements, a compliance score was calculated for each sample firm. Two methods of measuring compliance are used: the dichotomous method and the partial compliance method. By adopting both approaches proposed in literature for measuring compliance, the authors enhance the robustness of the findings of this study, while they provide empirical evidence concerning the extent to which the two approaches provide significantly different results. Further, they investigated firms' characteristics that are hypothesized to be related with disclosure compliance. It appears that closely held firms exhibit higher compliance rate. In addition, there is a positive association between the engagement of a Big-4 international auditing firm and disclosure compliance. Firms' profitability, leverage, and size do not explain disclosure compliance. The authors found that the two methods of measuring compliance do not produce significantly different results.

THE EFFECT OF CAPITAL STRUCTURE, SYSTEMATIC RISK, AND UNSYSTEMATIC RISK ON STOCK RETURN

The purpose of study was to analyze the effect of capital structure, systematic risk on stock return. The model proposed was evaluated using SPSS statistics 22. Samples in this study are public firms listed on the Indonesian stock Exchange with LQ 45 Index for period 2009-2012. The result of this study showed that (1) The variable of capital structure, systematic risk and unsytematic risk together have a positive influence on stock return; (2) The capital structure has a positive and significant impact on stock return; (3) The systematic risk (beta) has a negative effect on stock return; and (4) The unsystematic risk has a negative effect on stock return. The limitations of this study were as follows: (1) The number of sample used in this study is small, so the result might not be able to describe the overall companies; (2) The study was only investigated the sample firm from manufacturing sector with LQ45 Index; (3) The study calculated stock returns without considering the risks. Therefore, it was necessary to manner. Subsequent research suggested that (1) The number of samples shoulds be increased; (2) The sample of companies in the industry should be expanded; (3) The stock return by calculating the risk adjusted return should be considered.

SLAPPed: the relationship between SLAPP suits and changed ESG reporting by firms

Purpose – This paper aims to explore any potential link between the corporate issue of a Strategic Lawsuit Against Public Participation (SLAPP) with a changed environmental, social and governance (ESG) reporting focus as part of a complementary communicative legitimation strategy. Design/methodology/approach – A longitudinal content analysis of the annual reports of three sample Australian corporations was undertaken, measuring changes in ESG disclosure levels and disclosure focus around the time a SLAPP was issued by each sample firm. Findings – This paper provides support for the contention that both the number of ESG disclosures and the type of ESG disclosures changed after the sample firms issued SLAPPs. Research limitations/implications – A number of limitations are identified within the paper, including difficulties identifying when SLAPPs are initiated. Originality/value – To the authors’ knowledge, this is the first investigation of the relationship between SLAPPs and ESG reporting, and this study helps open up a new area of research into how ESG reporting is used by corporations in a strategic manner.

Compensation Peer Groups and Their Relation with CEO Pay

ABSTRACT Using a sample of S&P 1500 firms, we examine the selection of peer groups to set executive compensation. We document that the researcher-defined pool of potential peers significantly influences whether one concludes that the selection of peers is opportunistically biased to increase sample firm pay. With a broad pool of potential peers, opportunism seems more evident but when the potential peers are culled to a group that might better reflect the CEO labor market, selection appears less opportunistic. This finding is reinforced when we examine and find that differences in economic or compensation characteristics are largely unrelated to sample firm pay, even in settings in which we would most expect opportunism.