Read Books Online and Download eBooks, EPub, PDF, Mobi, Kindle, Text Full Free.
The Impact Of Disclosure Quality On Analysts Forecast In China
Download The Impact Of Disclosure Quality On Analysts Forecast In China full books in PDF, epub, and Kindle. Read online The Impact Of Disclosure Quality On Analysts Forecast In China ebook anywhere anytime directly on your device. Fast Download speed and no annoying ads. We cannot guarantee that every ebooks is available!
Book Synopsis The Impact of Disclosure Quality on Analysts' Forecast in China by : Ming Liu
Download or read book The Impact of Disclosure Quality on Analysts' Forecast in China written by Ming Liu and published by . This book was released on 2019 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt: Since the establishment of the Shenzhen Stock Exchange's (SZSE) Disclosure Ranking System in 2001, listed companies' disclosure quality has been increasing year by year in China. Better disclosure quality helps reduce the information asymmetry between the managers of those companies and external investors. This implies that analysts can access more timely, valuable, and reliable information to understand companies' overall operating status, financial reports, and accrual components of earnings. As analysts can save time and costs when disclosure quality is higher, their earnings forecast error and optimism bias are reduced and the divergence in their opinions about the firm prospects decreases. We investigate whether disclosure quality affects analysts' forecasting behavior in China's securities market using the disclosure ranking data obtained from SZSE, and find that higher disclosure quality improves analysts' forecast accuracy, alleviates forecast optimism, and reduces forecast dispersion.
Book Synopsis Determinants and Impacts of Risk Disclosure Quality by : Tamer Elshandidy
Download or read book Determinants and Impacts of Risk Disclosure Quality written by Tamer Elshandidy and published by . This book was released on 2018 with total page 27 pages. Available in PDF, EPUB and Kindle. Book excerpt: Purpose: Few studies have focused on emerging markets owing to difficulties in identifying the real effect of disclosures on these economies. To fill this gap, this paper investigates the main drivers for risk disclosure quality for Chinese financial firms, and further studies the impact of such disclosure on market liquidity.Design/methodology/approach: The sample comprises all financial firms listed in the Shanghai A-shares market for the period 2013-2015. By relying on manual content analysis of annual reports, the risk disclosure quality is measured through a multidimensional approach which encompasses three factors: quantity of disclosure, coverage of disclosure, and the semantic properties of depth and outlook. The findings of this paper are based on ordinary least squares (OLS) and fixed-effects estimations.Findings: Our findings suggest that firm characteristics (especially size) influence risk disclosure practices of Chinese financial companies. Furthermore, we found that risk disclosure quality has an impact on market liquidity, and when we analysed each year we noticed that the results were driven by the year 2013; moreover, we noticed no or little significance from the period of the emerging financial crisis.Research limitations/implications: The sample of this paper is limited to financial firms in China. The usage of manual content analysis limits our ability to investigate risk reporting drivers and its impact on market liquidity on a large scale.Practical implications: The importance of this paper stems from documenting several reporting incentives concerning not only firms' quantity, but also firms' quality of risk reporting. Collectively, our findings support activism for reforms and the enhancement of regulations in China in order to make the market more efficient.Originality/value: This paper provides new evidence for financial companies in China on the principal drivers for risk disclosure quality and highlights how the quality of such disclosure impacts market liquidity. Furthermore, this paper confirms previous findings on the Chinese market (Ball et al., 2000; Zou and Adams, 2008) in which, given a decreasing but still strong state presence, there is higher stock volatility and weak corporate governance.
Book Synopsis Capitalizing China by : Joseph P. H. Fan
Download or read book Capitalizing China written by Joseph P. H. Fan and published by University of Chicago Press. This book was released on 2013 with total page 401 pages. Available in PDF, EPUB and Kindle. Book excerpt: La 4e de couverture indique : "Despite a vast accumulation of private capital, China is not embracing capitalism. Deceptively familiar capitalist features disguise the profoundly unfamiliar foundations of "market socialism with Chinese characteristics." The Chinese Communist Party (CCP), by controlling the career advancement of all senior personnel in all regulatory agencies, all state-owned enterprises (SOEs), and virtually all major financial institutions state-owned enterprises (SOEs), and senior Party positions in all but the smallest non-SOE enterprises, retains sole possession of Lenin's Commanding Heights. The chapters in this volume examine China's high savings rate, banking system, financial markets, financial regulations, corporate governance, and public finances; and consider policy alternatives the CCP might consider if its goal is China's elevation into the ranks of high income countries."
Book Synopsis Th Effect of Disclosure Quality on Stock Liquidity and Earnings Management by : Yuting Wang
Download or read book Th Effect of Disclosure Quality on Stock Liquidity and Earnings Management written by Yuting Wang and published by . This book was released on 2016 with total page 234 pages. Available in PDF, EPUB and Kindle. Book excerpt: This thesis provides evidence on the importance of disclosure quality on stock market and firm corporate governance. It investigates the effect of disclosure quality on stock liquidity and earnings management for Chinese firms listed on the Shenzhen Stock Exchange. My analysis is conducted in two parts. The first part investigates the relationship between disclosure quality and stock liquidity. The results from various proxies for market liquidity suggest that higher disclosure quality leads to improved stock liquidity with reduced information asymmetry. Further, as the disclosure rating improves, the ability for information disclosure to mitigate information asymmetry and stimulate market liquidity becomes stronger. The second part of the thesis examines the effect of disclosure quality on listed firms’ earnings management. I find that a higher level of disclosure quality is associated with less earnings management and lower information asymmetry. However, the results do not provide any significant evidence on the relationship between the change in disclosure quality and the change in the inclination to engage in earnings management. This indicates that the ratio of earnings management level in adjacent fiscal years cannot capture the change in earnings management, and it further confirms that accruals reversion among accounting periods should be considered when constructing models for changes in earnings management.
Book Synopsis Disclosure Standards and Market Efficiency by : Hui Tong
Download or read book Disclosure Standards and Market Efficiency written by Hui Tong and published by . This book was released on 2005 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Since the Mexican and Asian crises, there has been a proliferation of international initiatives, including an ambitious standard-setting agenda, to encourage banks, firms and governments to disclose more information about their financial affairs. This paper studies whether and how such transparency standards affect information accuracy and dispersion. I show that the impact of transparency initiatives may be more limited than often thought to the extent that public disclosure crowds out private investments in information. I first develop a theoretical model of the incentive to invest in information and the impact of public disclosure. I then analyze a panel data set of stock market analysts' forecasts for sixty countries for the period 1990-2002. I find that disclosure standards enhance forecast accuracy directly but at the same time reduce the number of analysts per stock (the variable that serves as my proxy for private investments in information). The net effect of disclosure standards on forecast accuracy and dispersion thus ranges from weak to nonexistent. The implication is that studies that fail to analyze this crowding out effect may exaggerate the impact of disclosure standards on market outcomes.
Book Synopsis Corporate Disclosure Quality and Properties of Analysts' Information Environment by : Donal Byard
Download or read book Corporate Disclosure Quality and Properties of Analysts' Information Environment written by Donal Byard and published by . This book was released on 2003 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study examines how the quality of corporate disclosures impacts the precision of information that financial analysts incorporate into their forecasts of upcoming annual earnings. Our empirical measures distinguish between the precision of individual analysts' common and idiosyncratic (private) information, and between the quality of firms' public disclosures and private communications with analysts. We find that higher quality disclosures increase the precision of individual analysts' common and idiosyncratic information. These findings are due to higher quality annual and quarterly accounting disclosures. In contrast, we find no evidence that the quality of private communications between analysts and management affects the precision of analysts' common or idiosyncratic information.
Book Synopsis Management Forecast Revisions and Their Long-Run Effects on Analyst Forecasts by : Yunling Song
Download or read book Management Forecast Revisions and Their Long-Run Effects on Analyst Forecasts written by Yunling Song and published by . This book was released on 2014 with total page 22 pages. Available in PDF, EPUB and Kindle. Book excerpt: Management forecasts in Chinese share market are mostly mandatory, accompanied by many revisions to original forecasts. This paper describes the phenomenon of management forecast revisions and examines their long-run effects on analyst forecasts. We found that the revisions are almost evenly distributed among good news and bad news, but the revisions with bad news occur significantly later than those with good news. Meanwhile, the precision of revisions is significantly higher than that of original forecasts. The revisions affect management's reputation of credible disclosure in that analysts update less to subsequent management forecasts with revisions in prior years. Further analysis shows that analysts' consideration to revisions in prior years is sensible.
Book Synopsis Disclosure Quality Determinants and Consequences by : Nooraisah Katmun
Download or read book Disclosure Quality Determinants and Consequences written by Nooraisah Katmun and published by . This book was released on 2012 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This study consists of three main projects covering (i) the relationship between disclosure quality and earnings management and (ii) the relationship between corporate governance and disclosure quality. Disclosure quality is measures using the IR Magazine Award, the forward looking information in the annual report, and the analyst forecast accuracy. Match-paired samples comprised of the winners and non-winners of the IR Magazine Award during the years from 2005-2008 were employed in this study. Simultaneity bias in all projects was remedied by the use of a simultaneous system of equation, which was estimated using two-stage least square regression (2SLS). This study provides several interesting findings. With regard to the first project, disclosure quality and earnings management, it is shown that all disclosure quality proxies are consistently reported significant negative relationship with earnings management in the OLS regression. However, audit committee characteristics and board characteristics reveal insignificant relationship with earnings management, except audit committee meeting which reported positive association. Concerning the potential complementary and substitutive effect of internal governance and disclosure quality in deterring earnings management, result of the interaction terms revealed that there is a complementary relationship between audit committee quality and disclosure quality (measured using Investor Relation Magazine Award) in deterring earnings management. When disclosure quality and earnings management are treated as endogenous, this study reveals that there is a significant bi-directional relationship between disclosure quality and earnings management, highlighting that causality can run in both directions. This suggests that future research should control for disclosure quality factors when examining the impact of corporate governance and earnings management and that the potential simultaneity between disclosure quality and earnings management should be considered in future models. With respect to the second project, corporate governance and disclosure quality, this study reveals that audit committee effectiveness, board meeting and board independent are significantly positively related to disclosure quality (measured using IR Magazine Award and the number of forward looking items in the annual report). With regard to the potential complementary or substitutive effect between board and audit committee characteristics in improving firm disclosure quality, this study reveal that there is a substitutive effect between board quality and audit quality in enhancing disclosure quality (measured using analyst forecast accuracy). If disclosure quality and board independence are treated as endogenous, there is a significant positive bi-directional relationship between them when disclosure quality is measured using the number of forward looking items. However, there is a negative bi-directional relationship and an insignificant bi-directional relationship shown when disclosure quality is measured using analyst forecast accuracy and the IR Magazine Award respectively.
Book Synopsis The Impact of Market Force on Information Quality and Corporate Policy by : Nairui Dong
Download or read book The Impact of Market Force on Information Quality and Corporate Policy written by Nairui Dong and published by . This book was released on 2019 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The thesis focuses on studying the Chinese capital market. It begins by investigating the effect of analyst coverage on extreme level of tax avoidance. Then the thesis examines the effects of mutual fund ownership and managerial ownership on stock price crash risk. Finally, the study examines the relationship between the likelihood of meeting or beating analysts' forecasts and stock price crash risk, and the impact of analysts on the likelihood of meeting or beating analysts' forecasts in China. The study first finds that the greater coverage of analysts can constrain the extreme level of tax avoidance caused by agency conflicts between managers and shareholders. Then, the study finds that there is an inverted U shape relationship between mutual fund (managerial) ownership and stock price crash risk. Finally, the study finds that succeeding in meeting or beating analysts' forecasts can increase stock price crash risk in China, and analysts play the monitoring role on constraining firms' meeting or beating analysts' forecasts.
Book Synopsis Earnings Quality by : Jennifer Francis
Download or read book Earnings Quality written by Jennifer Francis and published by Now Publishers Inc. This book was released on 2008 with total page 97 pages. Available in PDF, EPUB and Kindle. Book excerpt: This review lays out a research perspective on earnings quality. We provide an overview of alternative definitions and measures of earnings quality and a discussion of research design choices encountered in earnings quality research. Throughout, we focus on a capital markets setting, as opposed, for example, to a contracting or stewardship setting. Our reason for this choice stems from the view that the capital market uses of accounting information are fundamental, in the sense of providing a basis for other uses, such as stewardship. Because resource allocations are ex ante decisions while contracting/stewardship assessments are ex post evaluations of outcomes, evidence on whether, how and to what degree earnings quality influences capital market resource allocation decisions is fundamental to understanding why and how accounting matters to investors and others, including those charged with stewardship responsibilities. Demonstrating a link between earnings quality and, for example, the costs of equity and debt capital implies a basic economic role in capital allocation decisions for accounting information; this role has only recently been documented in the accounting literature. We focus on how the precision of financial information in capturing one or more underlying valuation-relevant constructs affects the assessment and use of that information by capital market participants. We emphasize that the choice of constructs to be measured is typically contextual. Our main focus is on the precision of earnings, which we view as a summary indicator of the overall quality of financial reporting. Our intent in discussing research that evaluates the capital market effects of earnings quality is both to stimulate further research in this area and to encourage research on related topics, including, for example, the role of earnings quality in contracting and stewardship.
Book Synopsis Financial Reporting in the 1990s and Beyond by : Peter H. Knutson
Download or read book Financial Reporting in the 1990s and Beyond written by Peter H. Knutson and published by CFA Institute. This book was released on 1993 with total page 114 pages. Available in PDF, EPUB and Kindle. Book excerpt: Sets forth the position of investment advisors and financial analysts who want to see certain things changed.
Book Synopsis The Effects of Disclosure and Analyst Regulations on the Relevance of Analyst Characteristics for Explaining Analyst Forecast Accuracy by : Sami Keskek
Download or read book The Effects of Disclosure and Analyst Regulations on the Relevance of Analyst Characteristics for Explaining Analyst Forecast Accuracy written by Sami Keskek and published by . This book was released on 2017 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt: We posit and find an effect of disclosure and analyst reporting regulations implemented from 2000 through 2003 (including Regulation Fair Disclosure, the Sarbanes-Oxley Act, and the Global Settlement Act) on the importance of analyst and forecast characteristics for analyst forecast accuracy. Following the enactment of these regulations, more experienced analysts and All-Star analysts do not maintain their superior forecast accuracy, and analysts employed by large brokerage houses perform worse than other analysts. In addition, we find a decrease in the importance of analyst effort, the number of industries and firms followed, days elapsed since the last forecast, and forecast horizon. While the importance of bold upward forecast revisions does not change, bold downward revisions lose their relevance for forecast accuracy after 2003. Finally, we find an increase in the important of prior forecast accuracy. We find that the importance of these characteristics varies with the precision of publicly available information. Specifically, the decrease in the importance of most analyst and forecast characteristics and the increase in the importance of prior forecast accuracy are greater when the precision of publicly available information is low. Overall, our results suggest that the positive effects of experience, effort, brokerage house size, and All-Star status on forecast accuracy in the pre-regulation period were because of the information advantages that these analysts enjoyed (rather than their ability to generate private information). In contrast, our results suggest that prior forecast accuracy is related to analysts' ability to generate private information.
Book Synopsis The Relation between Annual Report Disclosures, Analysts? Earnings Forecasts and Analyst Following by : Li Li Eng
Download or read book The Relation between Annual Report Disclosures, Analysts? Earnings Forecasts and Analyst Following written by Li Li Eng and published by . This book was released on 2000 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This study examines the impact of annual report disclosures on analysts? forecasts for a sample of firms listed on the Stock Exchange of Singapore (SES). We examine the relation between the level of corporate disclosure and accuracy of analysts? earnings forecasts, dispersion in analysts? earnings forecasts, and the size of analyst following. The results reveal that the level of annual report disclosures is positively related to the accuracy of earnings forecasts by analysts, provided there is no big earnings surprise, and is also positively related to analyst following. We also find that the level of corporate disclosure is negatively related to dispersion in analysts? earnings forecasts provided there is no big earnings surprise. Thus, this study shows that more corporate disclosures by Singapore firms lead to more accuracy and less dispersion in the earnings forecasts among analysts. Furthermore, greater corporate disclosure can also lead to greater analyst interest in the firm.
Book Synopsis Disclosure Practices, Enforcement of Accounting Standards and Analysts' Forecast Accuracy by : Ole-Kristian Hope
Download or read book Disclosure Practices, Enforcement of Accounting Standards and Analysts' Forecast Accuracy written by Ole-Kristian Hope and published by . This book was released on 2003 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Using a sample from 22 countries, I investigate the relations between the accuracy of analysts' earnings forecasts and the level of annual report disclosure; and between forecast accuracy and the degree of enforcement of accounting standards. I document that firm-level disclosures are positively related to forecast accuracy, suggesting that such disclosures provide useful information to analysts. I construct a comprehensive measure of enforcement and find that strong enforcement is associated with higher forecast accuracy. This finding is consistent with the hypothesis that enforcement encourages managers to follow prescribed accounting rules, which, in turn, reduces analysts' uncertainty about future earnings. I also find evidence consistent with disclosures being more important when analyst following is low and with enforcement being more important when more choice among accounting methods is allowed.
Book Synopsis Information Dissemination Through Embedded Financial Analysts by : Zengquan Li
Download or read book Information Dissemination Through Embedded Financial Analysts written by Zengquan Li and published by . This book was released on 2019 with total page 50 pages. Available in PDF, EPUB and Kindle. Book excerpt: When emerging market firms disclose relationship-based transactions, they face a tradeoff in which greater transparency may help lower their cost of capital at the cost of revealing proprietary information. We find that firms overcome this challenge by relying on analysts within their private networks (i.e., connected analysts) who, through repeated interaction with the firm, can better verify relationship-based transactions. Using Chinese firms, we show that firms with more connected analysts have more accurate consensus forecasts and lower forecast dispersion. When a connected analyst departs and stops covering a firm, the accuracy and informativeness of the unconnected analysts' forecasts decrease, suggesting that information spills over from the connected analyst to analysts outside the network. We find a potential mechanism for this information spillover: communication through common institutional clients. The findings suggest that embedded financial analysts--those who share close connections with firms and analysts--serve as a channel for disseminating proprietary, hard-to-verify information.
Book Synopsis An Examination of Factors Affecting Chinese Financial Analysts' Information Comprehension, Analyzing Ability and Job Quality by : Yiming Hu
Download or read book An Examination of Factors Affecting Chinese Financial Analysts' Information Comprehension, Analyzing Ability and Job Quality written by Yiming Hu and published by . This book was released on 2009 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines various factors affecting Chinese financial analysts' information comprehension, analyzing ability and job quality. We hypothesized that financial analysts with better educational background, more experience, superior resources provided by large brokerage firms and more information sources have better information comprehension, stronger analyzing ability, and higher job quality. Using a survey method to collect data, we found that information sources have a significant impact on analysts' information comprehension, analyzing ability and job quality. Specifically, analysts tend to exhibit greater information comprehension and better job quality when they conduct more company-level surveys. Additionally, when they have more access to firms' indirect information, analysts tend to have a stronger analyzing ability and better job quality. We also found that analysts' educational background has a positive impact on their analyzing ability while analysts' work experience improves their job quality. This study's results indicate that financial analysts are still a fledgling profession in current China, and the capabilities of Chinese financial analysts need to be improved through additional training and continued education. Moreover, our study is important in highlighting the urgency of fostering the development of the financial analysis profession in China.
Book Synopsis Market Microstructure Theory by : Maureen O'Hara
Download or read book Market Microstructure Theory written by Maureen O'Hara and published by John Wiley & Sons. This book was released on 1998-03-06 with total page 310 pages. Available in PDF, EPUB and Kindle. Book excerpt: Written by one of the leading authorities in market microstructure research, this book provides a comprehensive guide to the theoretical work in this important area of finance.
