832
Views
2
CrossRef citations to date
0
Altmetric
Articles

International Earnings Announcements: Tone, Forward-looking Statements, and Informativeness

, &
Pages 275-309 | Received 30 Jun 2019, Accepted 17 Jul 2021, Published online: 23 Aug 2021

References

  • Ahearne, A. G., Griever, W. L., & Warnock, F. E. (2004). Information costs and home bias: an analysis of US holdings of foreign equities. Journal of International Economics, 62(2), 313–336. https://doi.org/10.1016/S0022-1996(03)00015-1
  • Arslan-Ayaydin, Ö, Boudt, K., & Thewissen, J. (2014). Managers set the tone: Equity incentives and the tone of earnings press releases. Journal of Banking & Finance, 72, 132–147. https://doi.org/10.1016/j.jbankfin.2015.10.007
  • Bae, K., Tan, H., & Welker, M. (2008). International GAAP differences: The impact on foreign analysts. The Accounting Review, 83(3), 593–628. https://doi.org/10.2308/accr.2008.83.3.593
  • Barberis, N., & Thaler, R. (2003). Chapter 18: A survey of behavioral finance. In Handbook of the economics of finance (pp. 1053–1128). Elsevier, Volume 1, Part B.
  • Beugelsdijk, S., Kostova, T., Kunst, V., Spadafora, E., & van Essen, M. (2018). Cultural distance and firm internationalization: A meta-analytical review and theoretical implications. Journal of Management, 44(1), 89–130. https://doi.org/10.1177/0149206317729027
  • Bik, O., & Hooghiemstra, R. (2018). Cultural differences in auditors’ compliance with audit firm policy on fraud risk assessment procedures. Auditing: A Journal of Theory and Practice, 37(4), 25–48. https://doi.org/10.2308/ajpt-51998
  • Boudt, K., Thewissen, J., & Torsin, W. (2018). When does the tone of earnings press releases matter? International Review of Financial Analysis, 57, 231–245. https://doi.org/10.1016/j.irfa.2018.02.002
  • Bozanic, Z., Roulstone, D., & Van Buskirk, A. (2018). Management earnings forecasts and other forward-looking statements. Journal of Accounting and Economics, 65(1), 1–20. https://doi.org/10.1016/j.jacceco.2017.11.008
  • Bozzolan, S., Trombetta, M., & Beretta, S. (2009). Forward-looking disclosures, financial verifiability and analysts’ forecasts: A study of cross-listed European firms. European Accounting Review, 18(3), 435–473. https://doi.org/10.1080/09638180802627779
  • Chand, P., Cummings, L., & Patel, C. (2012). The effect of accounting education and national culture on accounting judgments: A comparative study of Anglo-Celtic and Chinese culture. European Accounting Review, 21(1), 153–182. https://doi.org/10.1080/09638180.2011.591524
  • Chen, J., & Zhang, H. (2010). The impact of regulatory enforcement and audit upon IFRS compliance: Evidence from China. European Accounting Review, 19(4), 665–692. https://doi.org/10.1080/09638180903384684
  • Chen, M. (2013). The effect of language on economic behavior: Evidence from savings rates, health behaviors, and retirement assets. American Economic Review, 103(2), 690–731. https://doi.org/10.1257/aer.103.2.690
  • Davis, A., Piger, J., & Sedor, L. (2012). Beyond the numbers: Measuring the information content of earnings press release language. Contemporary Accounting Research, 29(3), 845–868. https://doi.org/10.1111/j.1911-3846.2011.01130.x
  • Ding, Y., Jeanjean, T., & Stolowy, H. (2005). Why do national GAAP differ from IAS? The Role of Culture. The International Journal of Accounting, 40(4), 325–350. https://doi.org/10.1016/j.intacc.2005.09.004
  • Doidge, C., Karolyi, A., & Stulz, R. (2004). Why are foreign firms listed in the U.S. worth more? Journal of Financial Economics, 71(2), 205–238. https://doi.org/10.1016/S0304-405X(03)00183-1
  • Doidge, C., Karolyi, A., & Stulz, R. (2010). Why do foreign firms leave U.S. equity markets? The Journal of Finance, 65(4), 1507–1553. https://doi.org/10.1111/j.1540-6261.2010.01577.x
  • Dye, R. (1986). Proprietary and nonproprietary disclosures. Journal of Business, 59(2), 331–366. https://doi.org/10.1086/296331
  • Dyer, T., Lang, M., & Stice-Lawrence, L. (2017). The evolution of 10-K textual disclosure: Evidence from latent dirichlet allocation. Journal of Accounting and Economics, 64(2-3), 221–245. https://doi.org/10.1016/j.jacceco.2017.07.002
  • French, K., & Poterba, J. (1991). Investor diversification and international equity markets. American Economic Review, 81(2), 222–226. https://doi.org/10.3386/w3609
  • GLOBE. (2017). Global leadership & organizational behavior effectiveness. www.globeproject.com
  • Grauer, R., & Hakansson, N. (1987). Gains from international diversification: 1968-85 returns on portfolios of stocks and bonds. The Journal of Finance, 42(3), 721–739. https://doi.org/10.1111/j.1540-6261.1987.tb04581.x
  • Gray, S. (1988). Towards a theory of cultural influence on the development of accounting systems internationally. Abacus, 24(1), 1–15. https://doi.org/10.1111/j.1467-6281.1988.tb00200.x
  • Grinblatt, M., & Keloharju, M. (2001). How distance, language, and culture influence stockholdings and trades. The Journal of Finance, 56(3), 1053–1073. https://doi.org/10.1111/0022-1082.00355
  • Grubel, H. (1968). Internationally diversified portfolios: Welfare gains and capital flows. The American Economic Review, 58(5), 1299–1314. https://www.jstor.org/stable/1814029
  • Guiso, L., Sapienza, P., & Zingales, L. (2009). Cultural biases in economic exchange? The Quarterly Journal of Economics, 124(3), 1095–1131. https://doi.org/10.1162/qjec.2009.124.3.1095
  • Han, S., Kang, T., Salter, S., & Yoo, Y. (2010). A cross-country study on the effects of national culture on earnings management. Journal of International Business Studies, 41(1), 123–141. https://doi.org/10.1057/jibs.2008.78
  • Håkanson, L., & Ambos, B. (2010). The antecedents of psychic distance. Journal of International Management, 16(3), 195–210. https://doi.org/10.1016/j.intman.2010.06.001
  • Henry, E. (2006). Market reaction to verbal components of earnings press releases: Event study using a predictive algorithm. Journal of Emerging Technologies in Accounting, 3(1), 1–19. https://doi.org/10.2308/jeta.2006.3.1.1
  • Henry, E. (2008). Are investors influenced by how earnings press releases are written? Journal of Business Communication, 45(4), 363–407. https://doi.org/10.1177/0021943608319388
  • Henry, E., & Leone, A. (2016). Measuring qualitative information in capital markets research: Comparison of alternative methodologies to measure disclosure tone. The Accounting Review, 91(1), 153–178. https://doi.org/10.2308/accr-51161
  • Hofstede, G. (1980). Culture's consequences: International differences in work-related values. Sage Publications.
  • Hofstede, G. (2001). Culture's consequences: Comparing values, behaviors, institutions and organizations across nations. Sage Publications.
  • Hofstede, G. (2011). Dimensionalizing cultures: The Hofstede model in context. Online Readings in Psychology and Culture, 2(1), 3–26. https://doi.org/10.9707/2307-0919.1014
  • Hofstede, G., Hofstede, G., & Minkov, M. (2010). Cultures and organizations: Software of the mind. McGraw-Hill.
  • Hooghiemstra, R., Hermes, N., & Emanuels, J. (2015). National culture and internal control disclosures: A cross-country analysis. Corporate Governance: An International Review, 23(4), 357–377. https://doi.org/10.1111/corg.12099
  • Hope, O. (2003). Firm-level disclosures and the relative roles of culture and legal origin. Journal of International Financial and Managerial Accounting, 14(3), 214–248. https://doi.org/10.1111/1467-646X.00097
  • Huang, X., Teoh, S., & Zhang, Y. (2014). Tone management. The Accounting Review, 89(3), 1083–1113. https://doi.org/10.2308/accr-50684
  • Hutton, A., Miller, G., & Skinner, D. (2003). The role of supplementary statements with management earnings forecasts. Journal of Accounting Research, 41(5), 867–890. https://doi.org/10.1046/j.1475-679X.2003.00126.x
  • Jaggi, B., & Low, P. (2000). Impact of culture, market forces, and legal system on financial disclosures. International Journal of Accounting, 35(4), 495–519. https://doi.org/10.1016/S0020-7063(00)00076-5
  • Jennings, R. (1987). Unsystematic security price movements, management earnings forecasts, and revisions in consensus analyst earnings forecasts. Journal of Accounting Research, 25(1), 90–110. https://doi.org/10.2307/2491260
  • Kandogan, Y. (2012). An improvement to Kogut and Singh measure of cultural distance considering the relationship among different dimensions of culture. Research in International Business and Finance, 26(2), 196–203. https://doi.org/10.1016/j.ribaf.2011.11.001
  • Karolyi, A. (2016). The gravity of culture for finance. Journal of Corporate Finance, 41, 610–625. https://doi.org/10.1016/j.jcorpfin.2016.07.003
  • Karolyi, A., & Stulz, R. (2003). Chapter 16: Are financial assets priced locally or globally? In G. M. Constantinides, M. Harris, & R. M. Stulz, Handbook of the economics of finance (pp. 975–1020). Elsevier. Volume 1, Part B.
  • Kasznik, R. (1999). On the association between voluntary disclosure and earnings management. Journal of Accounting Research, 37(1), 57–81. https://doi.org/10.2307/2491396
  • Kim, J., Kim, Y., & Zhou, J. (2017). Languages and earnings management. Journal of Accounting and Economics, 63(2-3), 288–306. https://doi.org/10.1016/j.jacceco.2017.04.001
  • Kogut, B., & Singh, H. (1988). The effect of national culture on the choice of entry mode. Journal of International Business Studies, 19(3), 411–432. https://doi.org/10.1057/palgrave.jibs.8490394
  • Kothari, S. (2001). Capital markets research in accounting. Journal of Accounting and Economics, 31(1), 105–231. https://doi.org/10.1016/S0165-4101(01)00030-1
  • La Porta, R., Lopez-de-Silanes, F., Shleifer, A., & Vishny, R. (1998). Law and finance. Journal of Political Economy, 106(6), 1113–1155. https://doi.org/10.1086/250042
  • Lang, M., Smith-Raedy, J. S., & Wilson, W. (2006). Earnings management and cross listing: Are reconciled earnings comparable to U.S. earnings? Journal of Accounting and Economics, 42(1–2), 255–283. https://doi.org/10.1016/j.jacceco.2006.04.005
  • Li, E., & Ramesh, K. (2009). Market reaction surrounding the filing of periodic SEC reports. The Accounting Review, 84(4), 1171–1208. https://doi.org/10.2308/accr.2009.84.4.1171
  • Loughran, T., & McDonald, B. (2011). When is a liability not a liability? Textual analysis, dictionaries, and 10-Ks. The Journal of Finance, 66(1), 35–65. https://doi.org/10.1111/j.1540-6261.2010.01625.x
  • Lundholm, R., & Myers, L. A. (2002). Bringing the future forward: The effect of disclosure on the returns-earnings relation. Journal of Accounting Research, 40(3), 809–839. https://doi.org/10.1111/1475-679X.00072
  • Lundholm, R., Rogo, R., & Zhang, J. (2014). Restoring the tower of babel: How foreign firms communicate with U. S. Investors. The Accounting Review, 89(4), 1453–1485. https://doi.org/10.2308/accr-50725
  • Mayer, T., & Zignago, S. (2011). Notes on CEPII’s distance measures: The GeoDist database. Working paper, The French Centre for Research and Studies on the World Economy.
  • Mercer, M. (2004). How do investors assess the credibility of management disclosures? Accounting Horizons, 18(3), 185–196. https://doi.org/10.2308/acch.2004.18.3.185
  • Muslu, V., Radhakrishnan, S., Subramanyam, K., & Lim, D. (2015). Forward-looking MD&A disclosures and the information environment. Management Science, 61(5), 931–948. https://doi.org/10.1287/mnsc.2014.1921
  • Rogers, J. L. (2008). Disclosure quality and management trading incentives Journal of Accounting Research, 46(5), 1265–1296. https://doi.org/10.1111/j.1475-679x.2008.00308.x
  • Rogers, J., Van Buskirk, A., & Zechman, S. (2011). Disclosure tone and shareholder litigation. The Accounting Review, 86(6), 2155–2183. https://doi.org/10.2308/accr-10137
  • Shao, L., Kwok, C., & Guedhami, O. (2010). National culture and dividend policy. Journal of International Business Studies, 41(8), 1391–1414. https://doi.org/10.1057/jibs.2009.74
  • Stocken, P. (2000). Credibility of voluntary disclosure. The RAND Journal of Economics, 31(2), 359–374. https://doi.org/10.2307/2601045
  • Tetlock, P. (2007). Giving content to investor sentiment: The role of media in the stock market. The Journal of Finance, 62(3), 1139–1168. https://doi.org/10.1111/j.1540-6261.2007.01232.x
  • Trueman, B. (1986). Why do managers voluntarily release earnings forecasts? Journal of Accounting and Economics, 8(1), 53–71. https://doi.org/10.1016/0165-4101(86)90010-8
  • U.S. Securities and Exchange Commission. (2003). Final rule: conditions for use of non-GAAP financial measures. Releases 33-8176 and 34-47226; File No. S7-43-02. http://www.sec.gov/rules/final/33-8176.htm
  • U.S. Securities and Exchange Commission. (2004). Final rule: additional form 8-K disclosure requirements and acceleration of filing date. Releases 33-8400; 34-49424; File No. S7-22-02. http://www.sec.gov/rules/final/33-8400.htm
  • U.S. Securities and Exchange Commission. (2013). Accessing the U.S. capital markets - a brief overview for foreign private issuers. https://www.sec.gov/divisions/corpfin/internatl/foreign-private-issuers-overview.shtml
  • U.S. Securities and Exchange Commission. (2017). SEC division of corporate finance, Financial Reporting Manual. https://www.sec.gov/corpfin/cf-manual
  • Westbrook, I. (2014). Strategic financial and investor communication: The stock price story. Routledge.
  • World Bank. (2017). Worldwide governance indicators. https://datacatalog.worldbank.org/dataset/worldwide-governance-indicators

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.