Abstract

http://ssrn.com/abstract=220421
 
 

References (24)



 
 

Citations (3)



 
 

Footnotes (6)



 


 



Complexity and Analyst Following of Multinational Firms


Julia Grant


Case Western Reserve University - Department of Accountancy

Robert J. Bricker


Case Western Reserve University - Department of Accountancy

Timothy J. Fogarty


Case Western Reserve University - Department of Accountancy

Gary Previts


Case Western Reserve University - Department of Accountancy

January 2000


Abstract:     
This research studies the association between multinational firm complexity and analyst following. We first present a model of a firm?s operational complexity in terms of its lines of business and geographic operating regions, considered separately, jointly, and interactively, including a measure of operating segment complexity incorporating both line of business and geographic region information. Using ordinary least squares regression, we empirically measure the relationship between firm complexity and analyst following, controlling for firm size, risk, and ownership structure. Our analysis of about 250 firms is consistent with our hypothesis of a negative association between firm complexity and analyst following. Results on the interactive variable, operating segment complexity, are negative and significantly associated with analyst following. However, this model does not improve on those including lines of business and geographic operating regions separately and jointly. Our findings add to our understanding of the role of complexity in affecting analyst following of multinational firms, and have implications for segment reporting under SFAS 131.

Number of Pages in PDF File: 23

JEL Classification: G29, M41, M45

working papers series


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Date posted: May 16, 2000  

Suggested Citation

Grant, Julia and Bricker, Robert J. and Fogarty, Timothy J. and Previts, Gary, Complexity and Analyst Following of Multinational Firms (January 2000). Available at SSRN: http://ssrn.com/abstract=220421 or http://dx.doi.org/10.2139/ssrn.220421

Contact Information

Julia Grant
Case Western Reserve University - Department of Accountancy ( email )
Cleveland, OH 44106-7235
United States
216-368-4158 (Phone)
216-368-4776 (Fax)
Robert J. Bricker (Contact Author)
Case Western Reserve University - Department of Accountancy ( email )
Cleveland, OH 44106-7235
United States
(216) 368-5355 (Phone)
(216) 368-4776 (Fax)
Timothy J. Fogarty
Case Western Reserve University - Department of Accountancy ( email )
Cleveland, OH 44106-7235
United States
216-368-3938 (Phone)
216-368-4776 (Fax)
Gary J. Previts
Case Western Reserve University - Department of Accountancy ( email )
Cleveland, OH 44106-7235
United States
216-368-2074 (Phone)
216-368-4776 (Fax)
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References:  24
Citations:  3
Footnotes:  6

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