TY - JOUR
T1 - Cross-border information transfers
T2 - evidence from profit warnings issued by European firms
AU - Alves, Paulo
AU - Pope, Peter F.
AU - Young, Steven
PY - 2009
Y1 - 2009
N2 - 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.
AB - 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.
KW - Cross-border effects
KW - Information transfers
KW - Profit warnings
KW - Stock market reaction
UR - http://www.scopus.com/inward/record.url?scp=72849120293&partnerID=8YFLogxK
U2 - 10.1080/00014788.2009.9663378
DO - 10.1080/00014788.2009.9663378
M3 - Article
AN - SCOPUS:72849120293
SN - 0001-4788
VL - 39
SP - 449
EP - 472
JO - Accounting and Business Research
JF - Accounting and Business Research
IS - 5
ER -