What do you say and how do you say it: Information disclosure in Latin American firms

Diego Téllez (), Maximiliano González (), Alexander Guzmán () and María Andrea Trujillo ()

No 16358, Documentos de Trabajo de Valor Público from Universidad EAFIT

Abstract: Firms in Latin America could differentiate themselves by adopting better information disclosure practices. In this paper, we construct an Information Disclosure Index (IDI) for a sample of 454 firms in the six largest Latin America countries. We look at 3.191 company reports and show that firms with better disclosure practices have better market valuation (Tobin’s Q) and operating performance (ROE). We then measure the tone of the information disclosed using word content analysis, and find that uncertainty in tone is negatively associated with higher firm valuation (Tobin’s Q) and better financial performance (ROE).

Keywords: Disclosure; Content; analysis; Corporate; governance; Firm; value (search for similar items in EconPapers)
JEL-codes: G15 G34 (search for similar items in EconPapers)
Pages: 29
Date: 2017-02-25
New Economics Papers: this item is included in nep-bec and nep-cfn
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://hdl.handle.net/10784/11234

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:col:000122:016358

Access Statistics for this paper

More papers in Documentos de Trabajo de Valor Público from Universidad EAFIT Contact information at EDIRC.
Bibliographic data for series maintained by Valor Público EAFIT - Centro de estudios e incidencia ().