Cross-border information transfers: evidence from profit warnings issued by European firms

Paulo Alves, Peter F. Pope, Steven Young*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

12 Citations (Scopus)

Abstract

This paper reports evidence on cross-border accounting information transfers associated with profit warning announcements. Using a sample of firms from 29 European countries, we find that negative earnings surprises disclosed by firms in one country affect investors' perceptions of comparable non-announcing firms in other countries. The form and magnitude of cross-border effects is consistent with domestic transfers. Tests explaining variation in cross-border information transfers provide some (albeit rather limited) evidence that effects vary according to a range of firm-, industryand country-level characteristics.

Original languageEnglish
Pages (from-to)449-472
Number of pages24
JournalAccounting and Business Research
Volume39
Issue number5
DOIs
Publication statusPublished - 2009

Keywords

  • Cross-border effects
  • Information transfers
  • Profit warnings
  • Stock market reaction

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