Article (Scientific journals)
Risk disclosure and analyst following: a study of French listed firms
DEROUICHE, Imen; MUESSIG, Anke; WEBER, Véronique
2020In European Journal of Finance, 26 (14), p. 1355-1376
Peer Reviewed verified by ORBi
 

Files


Full Text
Full_Manuscript.docx
Publisher postprint (117.51 kB)
Download

All documents in ORBilu are protected by a user license.

Send to



Details



Keywords :
Risk disclosure; Analyst following; Information Asymmetry
Abstract :
[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.
Disciplines :
Accounting & auditing
Author, co-author :
DEROUICHE, Imen ;  University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > Center for Research in Economic Analysis (CREA)
MUESSIG, Anke ;  University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > Center for Research in Economic Analysis (CREA)
WEBER, Véronique ;  University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > Center for Research in Economic Analysis (CREA)
External co-authors :
no
Language :
English
Title :
Risk disclosure and analyst following: a study of French listed firms
Publication date :
2020
Journal title :
European Journal of Finance
ISSN :
1351-847X
eISSN :
1466-4364
Publisher :
Taylor and Francis, Abingdon, United Kingdom
Volume :
26
Issue :
14
Pages :
1355-1376
Peer reviewed :
Peer Reviewed verified by ORBi
Focus Area :
Finance
FnR Project :
FNR8363110 - The Simultaneous Relation Between Accounting Conservatism And Risk Reporting And Their Joint Effect On Analysts' Forecast Accuracy, 2014 (01/07/2016-30/06/2019) - Anke Müßig
Funders :
FNR - Fonds National de la Recherche [LU]
Available on ORBilu :
since 17 October 2018

Statistics


Number of views
327 (36 by Unilu)
Number of downloads
99 (11 by Unilu)

Scopus citations®
 
9
Scopus citations®
without self-citations
8
WoS citations
 
12

Bibliography


Similar publications



Contact ORBilu