Cross-Border Information Transfers: Evidence from Profit Warnings Issued by European Firms

Paulo Alves (), Peter Pope and Steven Young ()
Additional contact information
Peter Pope: Lancaster University
Steven Young: Lancaster University

No 1, Working Papers de Gestão (Management Working Papers) from Católica Porto Business School, Universidade Católica Portuguesa

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 nonannouncing 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-, industry- and country-level characteristics.

Keywords: Information transfers; Profit warnings (search for similar items in EconPapers)
Pages: 45 pages
Date: 2009-01
New Economics Papers: this item is included in nep-bec
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:cap:mpaper:012009

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