Reference : Risk disclosure and analyst following:A study of French listed firms
Scientific congresses, symposiums and conference proceedings : Unpublished conference
Business & economic sciences : Accounting & auditing
http://hdl.handle.net/10993/42367
Risk disclosure and analyst following:A study of French listed firms
English
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) >]
17-Dec-2018
Yes
Paris Financial Management Conference
from 17-10-2018 to 19-10-2018
[en] Risk disclosure ; Analyst following ; Information asymmetry
[en] In this study, we examine the effect of risk disclosure on the number of analysts following a firm using a sample of non financial and non utilities listed companies belonging to the 120 SBF index over the period 2007−2015. We also investigate the role that information asymmetry plays in this relationship. Our results show a positive and significant association between risk disclosure and analyst following, suggesting that firms providing higher risk disclosure attract more analysts, probably because of the low cost of gathering information on more transparent firms. However, a high degree of information asymmetry mitigates this positive effect, indicating that risk disclosure may not be a sufficient incentive for analyst following. Thus, although the analyst works as an information intermediary, the high information asymmetry seems to act as a burden making the cost of following those high risk disclosure firms outweighing the benefits associated with it.
[University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > Center for Research in Economic Analysis (CREA) >]
