Twitter-Based Dissemination of Corporate Disclosure and the Intervening Effects of Firms' Visibility: Evidence from Australian-Listed Companies

2014 ◽  
Vol 29 (2) ◽  
pp. 107-136 ◽  
Author(s):  
Maria Prokofieva
Keyword(s):  
Information Asymmetry ◽  
Stock Exchange ◽  
Listed Companies ◽  
Negative Association ◽  
Corporate Disclosure ◽  
Financial Analyst ◽  
Analyst Coverage ◽  
Business Press ◽  
Corporate Announcements ◽  
Twitter Activity

ABSTRACT This paper investigates the effect of dissemination of corporate disclosure via Twitter. In particular, the study is focused on listed companies in Australia that employed Twitter as a secondary dissemination channel for corporate announcements in 2008–2013. Based on a sample of 3,516 announcements at the Australian Stock Exchange (ASX) related to 109 listed companies, the research employs the Investor Recognition Hypothesis to investigate the effect of Twitter activity on the information asymmetry proxied by abnormal spread (SpreadAbn). The findings show that there is a negative association between SpreadAbn and tweets posted by a firm during the announcement period. Further analysis shows that this association is stronger for firms less visible through business press or financial analyst coverage. The study concludes that while corporate announcements are publicly available through the ASX platform, dissemination of corporate announcements through Twitter allows companies to attract investors' attention and decrease information asymmetry.

scholarly journals Factors Mitigating Firm-specific Information Asymmetry and Target Price Accuracy in India

2017 ◽  
Vol 42 (4) ◽  
pp. 220-233
Author(s):  
Samie Ahmed Sayed ◽  
Latha Sreeram
Keyword(s):  
Emerging Markets ◽  
Information Asymmetry ◽  
Specific Information ◽  
Forecast Horizon ◽  
Target Price ◽  
Analyst Coverage ◽  
Corporate Announcements ◽  
Equity Research ◽  
Research Analysts ◽  
One Year

Executive Summary Over the last decade, efforts have been made to improve the quality of financial reporting and corporate governance standards prevailing in emerging markets. Even after 20 years of globalization, emerging markets continue to trade as a separate class ( Bekaert & Harvey, 2014 ). On account of a weak regulatory environment, firm-specific information asymmetry is expected to be on the higher side as compared to developed markets. In such an environment, any factors which mitigate information asymmetry may help improve efficiency of information providers such as equity research analysts. The role of equity research analysts is to process financial information and provide estimates which may be used by investors to make informed investment decisions. This study investigates whether the factors which mitigate firm-specific information asymmetry improve analyst target price accuracy in India. We expect sophisticated financial intermediaries such as equity research analysts to produce more accurate target price forecasts for firms with higher frequency of corporate announcements, higher analyst coverage, and higher foreign institutional holdings. Past research suggests that these three factors reduce information asymmetry and this reduction could possibly help analysts produce superior results. Our results show that higher frequency of corporate announcements creates short-term noise which reduces target price accuracy at the end of one-year forecast horizon. Our findings reveal that higher analyst coverage leads to better flow of firm-specific private information and improves target price accuracy anytime during or at the end of one year. We report that higher foreign institutional holding possibly improves stock liquidity, attracting more traders, which eventually leads to better target price accuracy at the end of forecast horizon. Our key finding is that there is a reduction in firm-specific information asymmetry due to the presence of more number of analysts and higher percentage of institutional holding.

scholarly journals The Board Faultlines and Corporate Disclosure Quality: Based on Big Data Samples and Economic Model

2021 ◽  
Vol 251 ◽  
pp. 01043
Author(s):  
Qian Xing
Keyword(s):  
Big Data ◽  
Economic Model ◽  
Information Disclosure ◽  
Stock Exchange ◽  
Listed Companies ◽  
Corporate Disclosure ◽  
Disclosure Quality ◽  
Research Findings ◽  
The Impact

This article uses the selected data listed companies in Shenzhen Stock Exchange from 2008 to 2018 as big data samples to empirically study the impact of the board faultlines on corporate disclosure quality. Through statistical analysis and economic model, it transforms qualitative questions into quantitative questions. The results of the study show that the existence of the board faultlines will reduce the quality of information disclosure of listed companies. After a series of robustness tests, the above research findings are still robust.

scholarly journals Analyst Coverage And The Diversification Discount

2011 ◽  
Vol 1 (8) ◽  
Author(s):  
Ronald W. Best ◽  
Charles W. Hodges ◽  
Bing-Xuan Lin
Keyword(s):  
Information Asymmetry ◽  
Font Size ◽  
Diversification Discount ◽  
Financial Analyst ◽  
Analyst Coverage

<p class="MsoNormal" style="text-align: justify; margin: 0in 0.5in 0pt;"><span style="font-size: 10pt;"><span style="font-family: Times New Roman;">We use financial analyst coverage as a measure of information asymmetry to examine excess firm values associated with single- and multi-segment firms.<span style="mso-spacerun: yes;">&nbsp; </span>We explicitly examine whether differences in analyst coverage can explain the diversification discount.<span style="mso-spacerun: yes;">&nbsp; </span>We find that information asymmetry plays a major role in the valuation of companies and explains a large portion of the diversification discount.<span style="mso-spacerun: yes;">&nbsp; </span>However, a significant diversification discount remains after controlling for the effects of analyst coverage.</span></span></p>

scholarly journals CFO’s Working as The Board Secretary Concurrently and Corporate Disclosure Quality: Based on Empirical Evidence of Listed Companies in Shenzhen Stock Exchange

2020 ◽  
Vol 5 (1) ◽  
pp. 84-104
Author(s):  
Xiang Rui ◽  
Qian Xing
Keyword(s):  
Empirical Evidence ◽  
Government Intervention ◽  
Stock Exchange ◽  
Listed Companies ◽  
Corporate Disclosure ◽  
Disclosure Quality ◽  
High Degree ◽  
The Impact ◽  
The Relationship

This paper took the selected data listed companies in Shenzhen Stock Exchange in 2008-2015 as samples to study the relationship between the CFO’s working as the Board Secretary concurrently and corporate disclosure quality, and also to examine the impact of different government intervention levels and nature of property rights. The results indicate that the CFO’s doubling as the Board Secretary can distinctly improve the quality of corporate disclosure in listed companies; the CFO’s holding concurrently the post of the Board Secretary can improve noticeably the disclosure quality of listed companies in regions with a high degree of government intervention; the CFO’s also serving as the Board Secretary can improve the disclosure quality of non-state-owned listed companies. Moreover, this paper presents a reasonable explanation for the phenomenon that increasingly more CFOs are serving as the Board Secretaries simultaneously via empirical study. Lastly, conclusions of this study can provide empirical evidence for the appointment of the Board Secretary in listed companies.

scholarly journals Effects of Corporate Disclosure on Share Price Movement: An Empirical Study on Listed Companies in Dhaka Stock Exchange

2019 ◽  
Vol 3 (3) ◽  
Author(s):  
AHM Yeaseen Chowdhury ◽  
◽  
M Shahin Sarwar ◽  
Md. Kaysher Hamid ◽  
◽  
...  
Keyword(s):  
Empirical Study ◽  
Stock Exchange ◽  
Listed Companies ◽  
Share Price ◽  
Corporate Disclosure ◽  
Price Movement

Audit Committee Effectiveness Among Malaysian Listed Companies

2020 ◽  
Author(s):  
Shamsul Nahar Abdullah ◽  
Ku Nor Izah Ku Ismail
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Stock Exchange ◽  
Listed Companies ◽  
The Other ◽  
Interactive Effects ◽  
Committee Chairman ◽  
Kuala Lumpur ◽  
Political Costs ◽  
Leadership Structure

This study investigates further the previous paper by Shamsul Nahar and Al-Murisi (1997) by examining the interactive effects of the variables in that paper and introducing other variables associated with corporate governance and political costs. The present study postulated that percentage of external directors on audit committee interacted with the presence of an accountant on audit committee and with the number of years an audit committee in existence, respectively, to influence audit committee effectiveness. The study also posited that the interaction of the presence of an accountant on audit committee and the number of years an audit committee in existence positively and significantly influenced audit committee effectiveness. Addition. ally, the roles of leadership structure, audit committee chairman, and a firm's size on audit committee effectiveness were also investigated. Using a multiple regression from a sample consisting the Kuala Lumpur Stock Exchange listed companies, results showed that only a firm's size significantly influenced audit committee effectiveness in the predicted direction. Other variables, on the other hand, did not show any significant influence on audit committee effectiveness.  

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