Corporate Nonfinancial Disclosure Practices andFinancial Analyst Forecast Ability AcrossThree European Countries

By A. Vanstraelen, M. Zarzeski, Sean W. G. Robb. 2003

216 citations recorded by the source corpus.

This paper presents evidence that companies across three continental European countries (Belgium, Germany and the Netherlands) provide varying degrees of analyst recommended non-financial disclosures to the marketplace. This study is the first to examine the relationship of Jenkins Committee non-financial disclosure levels with the accuracy and dispersion of financial analysts' earnings forecasts. Seemingly unrelated regression tests show that larger companies and companies with a global focus voluntarily provide higher levels of both forward looking and historical non-financial disclosures. Additionally, higher levels of forward looking non-financial disclosures are associated with lower dispersion and higher accuracy in financial analysts' earnings forecasts.

Subfields: Accounting, Finance, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/93cc59bd7bcc9d198a8d6034a4b219680c5d2569

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

1. M. Trombetta
2. Saverio Bozzolan
3. Sergio Beretta
4. Federica Ricceri
5. Philip O'Regan
6. A. Miihkinen
7. John Dumay
8. K. Hussainey

In Finance

1. Saverio Bozzolan
2. Sergio Beretta
3. M. Trombetta
4. A. Miihkinen

In Strategy and Management

1. Federica Ricceri
2. Saverio Bozzolan
3. Philip O'Regan
4. Sergio Beretta
5. M. Trombetta
6. John Dumay
7. Linlin Cai
8. G. Melloni

Citations in the corpus

• Corporate Incentives to Disclose Carbon Information: Evidence from the CDP Global 500 Report (2012, unknown): “We employ firm size to proxy for political visibility and social pressure because larger firms are subject to greater scrutiny and media coverage and higher public expectations (Bewley and Li, 2000; Vanstraelen et al., 2003).”
• Intellectual capital disclosure (ICD): A comparison of Italy and the UK (2006, background): “While recent decades have seen some gradual convergence in accounting practice and disclosure cultures, scope still exists for considerable variation across national boundaries ( Vanstraelen et al. , 2003”
• Introduction of International Accounting Standards, Disclosure Quality and Accuracy of Analysts' Earnings Forecasts (2013, unknown): “12 Wagenhofer and Dücker (2007) point out, however, that the interpretation of the measures commonly used in this literature from a theoretical point of view is not always clear (also see Dechow et al.”
• Forward-Looking Disclosures, Financial Verifiability and Analysts' Forecasts: A Study of Cross-Listed European Firms (2009, methodology): “The only comparable analysis of forward-looking disclosure (according to this point) is in Vanstraelen et al. (2003) where they construct their measure of non-financial disclosure by looking directly at the content of the original narrative documents.”