Journal ArticleDOI
Levels of voluntary disclosure in IPO prospectuses: an empirical analysis
TLDR
In this paper, the authors investigate the determinants and consequences of varying levels of details provided in these forecasts and find that the level of detail in forecast disclosures enhances the reliability of earnings forecasts.Abstract:
Purpose – This paper aims to focus on how forecasts information is disclosed in IPO prospectuses. In France, managers report either detailed forecasts or only a brief summary.Design/methodology/approach – The authors investigate the determinants and consequences of the varying levels of details provided in these forecasts. The research is based on a sample of 82 IPOs on the Euronext Paris market (2000‐2002).Findings – The paper shows that only two variables are associated with highly detailed forecast disclosures: forecast horizon and firm age. It is also found that the forecast error decreases as the level of detail in the forecast disclosures increases. This finding is robust to a reverse causality test (Heckman two‐stage self‐selection procedure) and suggests that the level of detail in forecast disclosures enhances the reliability of earnings forecasts.Research limitations/implications – The paper suffers from at least two potential flaws. First, omitted variables, such as the possession of good news ...read more
Citations
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Journal ArticleDOI
Family business and financial performance: Current state of knowledge and future research challenges
TL;DR: In this paper, the authors investigated the link between family ownership/control/management and firm performance, focusing on financial relations and found that the relationships between family business and corporate performance are complex and very probably moderated or mediated by factors that have not been included in these analyses.
Journal ArticleDOI
International portfolio diversification is better than you think
TL;DR: In this paper, the authors investigate whether investors correctly hedge their over-exposure to domestic risk by investing in foreign stock markets that have low correlation with their home stock market, and they find that, all else equal, investors do tilt their foreign holdings towards countries, which offer better diversification opportunities.
Journal ArticleDOI
Physical Market Determinants of the Price of Crude Oil and the Market Premium
TL;DR: In this paper, the authors analyzed the physical determinants of the real price of crude oil by means of an equilibrium correction model over the last two decades and found that two cointegrating relations affect the change in prices: OPEC's cartel behavior attempting to control prices using its market power and quotas; the other to the coverage rate expected future demand by OECD using inventory behaviours.
Journal ArticleDOI
Capturing and Treating Unobserved Heterogeneity by Response Based Segmentation in PLS Path Modeling. A Comparison of Alternative Methods by Computational Experiments
TL;DR: The purpose of this paper is to present a study on sets of simulated data with different characteristics that allows a primary assessment of these PLS path model related statistical approaches.
Book ChapterDOI
A Bourdieusian perspective on strategizing
TL;DR: In this article, a comprehensive perspective on practice by taking into consideration the core notions of field and habitus is proposed to consider strategizing as a practice This emphasizes the 'doing' of multiple agents; the embodied and tacit aspects; the symbolic violence and power issues at stake As a consequence, strategizing refers to the practice of motivated agents engaged in struggles.
References
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Journal ArticleDOI
Sample Selection Bias as a Specification Error
TL;DR: In this article, the bias that results from using non-randomly selected samples to estimate behavioral relationships as an ordinary specification error or "omitted variables" bias is discussed, and the asymptotic distribution of the estimator is derived.
Journal ArticleDOI
Investor Protection and Corporate Governance
TL;DR: In this article, the authors argue that the legal approach is a more fruitful way to understand corporate governance and its reform than the conventional distinction between bank-centered and market-centered financial systems, and discuss the possible origins of these differences, summarize their consequences, and assess potential strategies of corporate governance reform.
Journal ArticleDOI
Informational asymmetries, financial structure, and financial intermediation
TL;DR: This paper argued that the average quality is likely to be low, with the consequence that even projects which are known (by the entrepreneur) to merit financing cannot be undertaken because of the high cost of capital resulting from low average project quality.
Journal ArticleDOI
Earnings quality in uk private firms: comparative loss recognition timeliness
Ray Ball,Lakshmanan Shivakumar +1 more
TL;DR: In this article, the authors hypothesize that private company financial reporting nevertheless is of lower quality due to different market demand, regulation notwithstanding, and a large UK sample supports this hypothesis, using Basu's (1997) measure of timely loss recognition and a new accruals-based method.
Posted Content
Corporate Financial Statements, a Product of the Market and Political Processes
TL;DR: In this article, an outline for a theory of financial statements is presented, where financial statements are viewed as products of both markets and political processes and the interactions among individuals and groups in these processes.