The effects of multinationality on earnings response coefficients
Abstract
Refers to previous research on the firm characteristics which affect the relationship between unexpected returns and unexpected earnings to suggest that multinationality may proxy for all of them. Develops mathematical models to investigate the effect of multinationality and applies them to 1995‐1999 US data on multinational firms. Describes the methodology and presents the results, which suggest that firms with relatively more multinationality have smaller, less significant earnings response coefficients and vice versa. Concludes that multinationality is a good proxy for firm size, quality of preannouncement information, earnings predictability etc.
Keywords
Citation
Riahi‐Belkaoui, A. (2002), "The effects of multinationality on earnings response coefficients", Managerial Finance, Vol. 28 No. 3, pp. 97-106. https://doi.org/10.1108/03074350210767762
Publisher
:MCB UP Ltd
Copyright © 2002, MCB UP Limited