Reference : Risk disclosure and analyst following: a study of French listed firms
Scientific journals : Article
Business & economic sciences : Accounting & auditing
Finance
http://hdl.handle.net/10993/36967
Risk disclosure and analyst following: a study of French listed firms
English
Derouiche, Imen mailto [University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > Center for Research in Economic Analysis (CREA) >]
Muessig, Anke mailto [University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > Center for Research in Economic Analysis (CREA) >]
Weber, Véronique mailto [University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > Center for Research in Economic Analysis (CREA) >]
2020
European Journal of Finance
Taylor and Francis
26
14
1355-1376
Yes (verified by ORBilu)
International
1351-847X
1466-4364
Abingdon
United Kingdom
[en] Risk disclosure ; Analyst following ; Information Asymmetry
[en] Prior research shows that financial analysts play an important information intermediary role in France. This study extends earlier research to examine the effect of risk disclosure on the number of analysts following listed firms. Using a unique dataset of French firms on the 120 SBF index over 2007−2015, the results show a positive and significant relation between risk disclosure and analyst following, suggesting that firms having greater risk disclosure attract more financial analysts. These findings provide empirical support to the argument that analysts incur lower costs of information gathering in firms with greater risk disclosure. The demand for analyst services is also more valuable in these firms, given their potentially high exposure to risks, implying greater analyst following. Overall, our results are in line with prior literature highlighting that analysts’ activities complement annual report disclosures and, generally, corporate disclosures.
Department of Economics and Management
Fonds National de la Recherche - FnR
http://hdl.handle.net/10993/36967
10.1080/1351847X.2020.1726428
https://www.tandfonline.com/doi/full/10.1080/1351847X.2020.1726428
FnR ; FNR8363110 > Anke Müßig > RISK > The Simultaneous Relation between Accounting Conservatism and Risk Reporting and Their Joint Effect on Analysts’ Forecast Accuracy > 01/07/2016 > 30/06/2019 > 2014

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