An investigation of market response to earnings announcements : multinational firms versus domestic firms

Agnes CHENG, Koon Hung CHAN, Woody LIAO

Research output: Journal PublicationsJournal Article (refereed)peer-review

3 Citations (Scopus)

Abstract

Capital market responses to accounting earning annoucements have been well documented in the accounting literature. These responses may vary with firm size, analyst following, and other variables. This study investigates the effect of multinational operations as a proxy for operational and informational complexity on market responses to earnings announcements. The results show that multinational operations provide significant explanatory power for market responses to earnings announcements after controlling the factors of firm size and analyst following.
Original languageEnglish
Pages (from-to)125-138
Number of pages14
JournalThe International Journal of Accounting
Volume32
Issue number2
DOIs
Publication statusPublished - 1 Jan 1997
Externally publishedYes

Keywords

  • Domestic firms; Earnings announcement; Market response; Multinational firms

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