Country-segment disclosure of foreign operations from Central and Eastern Europe: Country-level determinants and value relevance

Alina Taran, Can Simga-Mugan and Marilena Mironiuc

Journal of Multinational Financial Management, 2021, vol. 62, issue C

Abstract: Operating segments reporting represents a potential source of information about corporate foreign operations. This paper investigates the country-segment disclosure related to Central and Eastern European (CEE) operations - regarded as potential reporting segments - of multinational corporations (MNCs). The empirical analysis indicates limited information on country segments in general, and a few country segments for CEE operations. The probability of country-segment disclosure depends on size of operations, and host-country economic conditions such as financial risk, competitiveness, ease of doing business and tax rates. The value relevance analysis indicates a significant negative influence of country-segment disclosure of CEE operations on stock prices. These findings provide insights about country-segment disclosure and suggest policy implications of managerial approach for operating segments reporting.

Keywords: Country-segment disclosure; Foreign subsidiaries; Stock price and returns; Value relevance; Host-country conditions; Tax rates (search for similar items in EconPapers)
JEL-codes: F23 M21 M40 (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:eee:mulfin:v:62:y:2021:i:c:s1042444x21000414

DOI: 10.1016/j.mulfin.2021.100718

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