The transmission of corporate financial information across national borders and equity market linkages

Michael Arthur FIRTH

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

15 Citations (Scopus)


Although intra-industry earnings information transfers have been documented within individual nations, little or no attention has been given to examining whether these transfers also exist across national boundaries. This study sets out to investigate the issue by analyzing the abnormal stock market returns of British firms at the time of annual earnings announcements by U.S. corporations and the returns of U.S. firms at the time of profit announcements by British companies. Information transfers are also tested by examining whether earnings surprises of companies in one country are related to revisions in investment analysts' consensus profit forecasts of non-reporting firms in the other country. The accuracies of revisions in consensus earnings estimates an investigated. Evidence of transnational information transfers from the United States to Britain is found and the degree and level of the signal is related to various firm and industry characteristics including correlations in reported profits.
Original languageEnglish
Pages (from-to)309-337
Number of pages29
JournalReview of Accounting Studies
Issue number4
Publication statusPublished - 1 Dec 1996


  • Spillover effects

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