Young, S E and Pope, P F and Alves, P (2009) Cross-border information transfers: evidence from profit warnings issued by European firms. Accounting and Business Research, 39 (5). pp. 449-472. ISSN 2159-4260
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This paper reports evidence on cross‐border accounting information transfers associated with profit warning announcements. Using a sample of firms from 29 European countries, we find that negative earnings surprises disclosed by firms in one country affect investors’ perceptions of comparable non‐announcing firms in other countries. The form and magnitude of cross‐border effects is consistent with domestic transfers. Tests explaining variation in cross‐border information transfers provide some (albeit rather limited) evidence that effects vary according to a range of firm‐, industryand country‐level characteristics.
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