Foreign macroeconomic and industry-related information transfers around earnings announcements: Evidence from U.S.-listed non-U.S. firms

Yashu Dong and Danqing Young

Journal of Accounting and Economics, 2021, vol. 71, issue 2

Abstract: This study examines information transfer regarding how investors react to new foreign macroeconomic and industry-related information embedded in foreign firms' earnings releases. Using non-U.S. firms listed in the U.S. as our main setting, we find that U.S. investors react significantly to foreign macroeconomic information and to information generated by the interaction between macroeconomic and industry-related information. We also find that the benefits (costs) of processing earnings reports increase (decrease) both types of information transfers. In addition, we find macroeconomic information transfers in an international cross-listing setting and both types of information transfers in an international non-cross-listing setting.

Keywords: Macroeconomic information transfer; Interaction-related information transfer; Disclosure processing costs; Cross-listing firms; Earnings announcement (search for similar items in EconPapers)
JEL-codes: G15 M40 M41 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jaecon:v:71:y:2021:i:2:s016541012100015x

DOI: 10.1016/j.jacceco.2021.101400

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