Foreign companies listing on U.S. exchanges are required to report financial information under U.S. GAAP on Form 20-F using either Item 17 or Item 18 disclosure rules. These two disclosure rules differ in that Item 17 allows many exemptions from U.S. GAAP, while Item 18 requires disclosure of...

This paper identifies segment characteristics that made industry segment reporting more useful in equity valuation. Those characteristics are the difference in segments' growth potential, the relative size of segments, and the magnitude of correlation in segment earnings. Usefulness is measured...

This study examines: (1) whether earnings announcements by industry member firms trigger analysts to revise their forecasts of other member firms' soon-to-be-released contemporaneous earnings and (2) how the revision is related to forecast bias and the announcing firms' earnings news. The...

We evaluate the ability of the mean analyst forecast to effectively summarize analysts' information. We show analytically that even if analysts possess the ability and intention to forecast earnings truthfully, the mean forecast underweights analysts' private information. Thus, the mean does not...