Overreaction or Underreaction to Intra-Industry Earnings Information Transfer: A Cross-Country Analysis

We apply the moderated confidence hypothesis (MCH) to investigate overreaction and underreaction in intra-industry earnings information transfers in an international setting. MCH predicts that late announcing firms’ investors overreact (underreact) to early announcing industry peers’ earnings news when early announcing peers’ earnings news is imprecise (precise) signals of late announcing firms’ earnings. Consistent with early announcing peers’ earnings news being imprecise signals of late announcing firms’ earnings in an international setting, we find that late announcing firms’ investors overreact to early announcing peers’ earnings news. The country-level information environment and culture shape the precision of peers’ earnings as signals of each other’s earnings and investor behaviors. Consistent with MCH, we find that late announcing firms’ investors are more likely to underreact in countries with a richer information environment, are more likely to overreact in countries with higher individualism and are less likely to overreact in countries with higher uncertainty avoidance.

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Information Environment and Earnings Management of Dual-Class Firms: A Cross-Country Analysis

SSRN Electronic Journal ◽

10.2139/ssrn.1929232 ◽

2011 ◽

Cited By ~ 4

Author(s):

Ting Li

Keyword(s):

Earnings Management ◽

Information Environment ◽

Country Analysis ◽

Cross Country ◽

Dual Class

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How Do Firms Use Cash Tax Savings? A Cross-country Analysis

Journal of the American Taxation Association ◽

10.2308/jata-19-027 ◽

2021 ◽

Author(s):

Danielle Higgins Green ◽

Jon N. Kerr

Keyword(s):

Multinational Corporations ◽

Tax Avoidance ◽

Cash Flows ◽

Tax System ◽

Country Level ◽

Country Analysis ◽

Cross Country ◽

Use Tax ◽

Tax Savings ◽

Fund Investment

We examine how firms utilize cash generated via tax avoidance. Understanding how firms use these cash flows is important given the considerable global attention firms' tax avoidance activities have received. Using an international sample, we find that firms are more likely to invest cash tax savings or use them to repurchase shares rather than distribute them in the form of dividends. We find that our results hold for an international sample of domestic-only firms, distinguishing our study from U.S.-only studies, which focus on constraints and distortions of multinational corporations in a worldwide tax system. When partitioning on country-level governance, we find that firms in weak governance countries are more likely to use tax savings to fund investment and pay dividends. Taken together, our results suggest cash tax avoidance is associated with important firm decisions, and these associations vary across countries.

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Risk-Antecedents of Firms and Strategic Mediators – New Evidence from a Cross-Country Analysis

American Business Review ◽

10.37625/abr.24.1.3-35 ◽

2021 ◽

Vol 24 (1) ◽

pp. 3-35

Author(s):

Ranjan DasGupta ◽

Monika Dhochak

Keyword(s):

Corporate Governance ◽

Emerging Market ◽

Empirical Literature ◽

Mediating Effects ◽

Firm Risk ◽

Firm Level ◽

Country Level ◽

Country Analysis ◽

Cross Country ◽

New Evidence

We examine the strength and nature of firm aspiration and expectation as strategic mediators in the association of risk antecedents and firm risk, after exploring the possible impact of such antecedents on firm aspiration, and firm aspiration’s preliminary influence on firm risk. Empirical literature is mostly silent about risk antecedents of firms in an emerging market or cross-country context, and to the best of our knowledge, the mediators proposed in this study are yet to be explored. We report strong significant positive mediating effects of firm aspiration and expectation in association of risk antecedents and firm risk. Our results also validate that all studied risk antecedents, except corporate governance- composition, significantly influence aspiration and expectation mediators and firm risk in line with our hypotheses. Our results also hold true after controlling for firm-level and country-level heterogeneities and conducting two additional robustness tests.

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The Effect of Media Competition on Analyst Forecast Properties: Cross-Country Evidence

Journal of Accounting Auditing & Finance ◽

10.1177/0148558x20929487 ◽

2020 ◽

pp. 0148558X2092948

Author(s):

Ying Cao ◽

Sami Keskek ◽

Linda A. Myers ◽

Albert Tsang

Keyword(s):

Financial Performance ◽

Information Acquisition ◽

Institutional Ownership ◽

Analyst Forecasts ◽

Information Environment ◽

Analyst Forecast ◽

International Setting ◽

Acquisition Costs ◽

Cross Country ◽

Effects Of Media

We examine the effect of media competition on analyst forecast properties in an international setting using 113,436 firm-year observations from 32 countries spanning 2000 through 2012. We find that firms in countries with stronger media competition enjoy more accurate, less optimistically biased, and less dispersed analyst forecasts. The effects of media competition on the properties of analyst forecasts are stronger for firms with lower institutional ownership, for firms followed by fewer analysts or by analysts from smaller brokerage houses, and for firms with weaker financial performance. This suggests that media competition plays a more pronounced role in shaping the information environment when information from nonmedia channels is likely to be limited or of lower quality. Finally, we find that analysts in countries with stronger media competition tend to follow more firms, suggesting that stronger media competition reduces analysts’ information acquisition costs, which in turn, improves the properties of their forecasts.

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Business Strategy and Intra-Industry Information Transfers

Accounting and Finance Research ◽

10.5430/afr.v6n3p1 ◽

2017 ◽

Vol 6 (3) ◽

pp. 1 ◽

Cited By ~ 1

Author(s):

Peng Guo

Keyword(s):

Business Strategy ◽

Information Transfer ◽

The Other ◽

Business Strategies ◽

Peer Firms ◽

Information Transfers ◽

Industry Peers

This study examines whether business strategy affects information transfers from one firm to its industry peers. I use Miles and Snow’s (1978, 2003) organizational typology to classify firms along a continuum with innovative ‘prospector’ firms at one end and stable low-growth ‘defender’ firms at the other. When a firm announces its earnings, the information transfer to other peer firms in the same industry is weaker (stronger) when the announcing firm is a prospector (defender). In addition, information transfers from the announcing firm to industry peers are weaker (stronger) when the industry peer is a prospector (defender). Taken together, the evidence in this paper suggests that firms’ business strategies affect the strength of information transfers.

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Growth and Equity in Tertiary Education in Sub-Saharan Africa

International Journal of African Higher Education ◽

10.6017/ijahe.v1i1.5645 ◽

2014 ◽

Vol 1 (1) ◽

Cited By ~ 2

Author(s):

Peter Darvas ◽

Sonali Ballal ◽

Kedebe Feda

Keyword(s):

Education System ◽

Tertiary Education ◽

Sub Saharan Africa ◽

Equitable Access ◽

African Countries ◽

Household Characteristics ◽

Country Level ◽

Country Analysis ◽

Cross Country ◽

Sub Saharan

This study represents a first report of a regional cross-country analysis of patterns in equity and growth in tertiary education in Sub-Saharan Africa. In it, we analyse country-level surveys and regional statistics to see how expansion affected equity, how equity is explained by household characteristics and other factors, and what the intrinsic characteristics of the tertiary education system are that influence equity. Data show that in many instances, Sub-Saharan African countries fall behind other regions in terms of equity; and whereas some policies, such as diversification and more equitable pre-tertiary education can help, more efforts and more effective policies need to be introduced to make the system more equitable. The report argues that growth itself will not necessarily lead to improved equity and more equitable access to tertiary education can help the sector in achieving its higher-level objectives, including its contribution to competitiveness and prosperity. Cette étude constitue le premier rapport d’une analyse de l’équité et de la croissance de l’enseignement supérieur en Afrique sub-saharienne. Nous analysons des enquêtes nationales et des statistiques régionales pour montrer la manière dont la croissance affecte l’équité, comment l’équité peut être expliquée par les caractéristiques des ménages ainsi que par d’autres facteurs et quels facteurs propres au système d’enseignement supérieur influencent l’équité. Les données montrent que, dans de nombreux cas, les pays d’Afrique sub-saharienne sont en retard par rapport à ceux d’autres régions en ce qui concerne l’équité. Tandis que certaines mesures politiques, comme diversifier l’enseignement supérieur ou rendre les enseignements primaire et secondaire plus équitables, peuvent aider, des efforts plus importants et des mesures politiques plus efficaces doivent être mis en place pour rendre le système plus équitable. Ce rapport soutient que la croissance ne conduira pas forcément à l’amélioration de l’équité et qu’un accès plus équitable à l’enseignement supérieur peut aider le secteur à atteindre ses objectifs les plus ambitieux, notamment contribuer à la compétitivité et la prospérité du pays et de la région.

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Religion and Political Protest: A Cross-Country Analysis

Comparative Political Studies ◽

10.1177/0010414018774351 ◽

2018 ◽

Vol 52 (2) ◽

pp. 246-276 ◽

Cited By ~ 4

Author(s):

Gizem Arikan ◽

Pazit Ben-Nun Bloom

Keyword(s):

Government Regulation ◽

Detrimental Effect ◽

Political Protest ◽

Religious Groups ◽

Individual Level ◽

Country Level ◽

Combining Data ◽

Country Analysis ◽

Cross Country ◽

The Individual

Religion’s effect on individual tendency to engage in political protest is influenced both by the resources available to citizens at the individual level and opportunities provided to religious groups and organizations at the country level. Combining data from last two waves of the World Values Surveys with aggregate data on religious regulation, we show that private religious beliefs reduce an individual’s protest potential while involvement in religious social networks fosters it. At the country level, we find that government regulation of religion decreases individual tendency to protest, and has an especially detrimental effect on the likelihood of religious minorities joining peaceful protest activities. These findings are in line with opportunity structure theories that stress the importance of system openness for fostering political protest.

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Does Civic Education Foster Civic Duty? A Systematic Cross-Country Analysis of the Effect of Three Forms of Civic Education on the Sense of Civic Duty to Vote

Canadian Journal of Political Science ◽

10.1017/s0008423920000669 ◽

2020 ◽

pp. 1-15

Author(s):

Fernando Feitosa

Keyword(s):

Learning Strategies ◽

Civic Education ◽

Classroom Environment ◽

Relative Effect ◽

Civic Duty ◽

Country Level ◽

Education Study ◽

Active Learning Strategies ◽

Country Analysis ◽

Cross Country

Abstract This article investigates if civic education can spur a sense of duty to vote and, in this way, help to augment the number of voters and diminish inequality in participation. I perform a systematic cross-country analysis of the link between different forms of civic education and civic duty, using the data from the 2016 International Civic and Citizenship Education Study (ICCS) that include 23 countries. The results show that three key civic education mechanisms—civics courses, active learning strategies and open classroom environment—exert an influence on civic duty but that civics courses have the strongest effect. Country-level analyses confirm that civics courses are more influential on civic duty than the other types of civic education. This evidence elucidates which channels of school socialization may help to develop a sense of duty in adolescents, as well as the relative effect of each mechanism.

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Participation in global value chains and varieties of development patterns

Cambridge Journal of Economics ◽

10.1093/cje/beaa046 ◽

2020 ◽

Author(s):

Bruno Carballa Smichowski ◽

Cédric Durand ◽

Steven Knauss

Keyword(s):

Principal Component ◽

Global Value Chains ◽

Value Chains ◽

Development Patterns ◽

Country Level ◽

Macroeconomic Indicators ◽

Country Analysis ◽

Cross Country ◽

And Cluster Analysis ◽

Definition Of

Abstract This paper relates participation in global value chains (GVCs) to development patterns at the country level. It accounts for the diversity and interdependence of development through a cross-country analysis for 51 countries between 1995 and 2008. We identify three patterns of socio-economic development related to various degrees and modes of GVC participation: a social upgrading mirage, the reproduction of the core and unequal growth. This result is achieved thanks to the introduction of two new elements to the literature: first, the introduction of new macroeconomic indicators of GVC participation and economic gains that are explicitly based in a theoretically consistent definition of GVCs; second, the identification of a variety of interdependent development patterns related to GVC participation through the use of principal component analysis and cluster analysis.

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