Using financial accounting data from manufacturing firms in 16 countries for 1986-1995, we demonstrate that the value relevance of financial reports is lower for countries where the financial systems are bank-oriented rather than market-oriented; where private sector bodies are not involved in...

The returns earned by US stocks since 1926 have generated an quot;equity premium puzzlequot;, since they exceed estimates derived from theory, from other periods and markets, and from surveys of investors. To determine if this historic estimate is biased upward, we offer a new approach based on...

We examine the relation between disclosure quality and information asymmetry among market participants following an exogenous shock to macroeconomic risk. In 2015 the Swiss National Bank abruptly announced that it would abandon the longstanding minimum euro-Swiss franc exchange rate. We find...

Abstract: We use reporting data from 2001 annual reports to construct a single measure of propensity to innovate for each member of a multi-country sample of global financial institutions. The measure proves to be robust when reconstructed from later 2002-2005 annual reports. It is also value...

A causal relationship between disclosure practices and cost of capital is difficult to establish because cost of capital reflects both disclosure practices (information risk) and fundamentals that are being disclosed (fundamental risk). To separate information risk from fundamental risk, this...

Empirical studies evaluating the impact of accounting information on the stock market have acquired great importance in the accounting literature and have become an instrument to assess the relevance and usefulness of accountancy itself. Following this path, we investigate the impact of the...

This paper examines whether cross-listing in the U.S. reduces foreign firms' costs of capital. While prior studies show that U.S. cross-listings are associated with substantial increases in firm value, the sources of these valuation effects are not well understood. We estimate cost of capital...

The United Arab Emirates (UAE) is a member of the Gulf Cooperating Countries (GCC) and over recent years has indicated willingness for implementation of the economic reforms necessary for the future evolution of a modern, open stock market. This study uses relative valuation techniques to...

This paper examines the relationship between bank efficiency change and stock price returns. We first estimate the cost and profit efficiency of a sample of Asian and Latin American listed banks over the period 2000-2006 while controlling for cross-country differences such as regulations and the...

We investigate rights issues on the Athens Stock Exchange. Across 129 issues during 1992-99, we find a significant announcement effect of 2%. Further examination shows that firms were more likely to issue stock after large price run-ups, after recent earnings announcements, to lower uncertainty...