The Association between Web-Based Corporate Performance Disclosure and Financial Analyst Behavior Under Different Governance Regimes

29 Pages Posted: 13 Dec 2007

See all articles by Denis Cormier

Denis Cormier

University du Quebec a Montreal

Michel Magnan

Concordia University - Department of Accountancy

Walter Aerts

University of Antwerp

Abstract

In this study, we assert and test that the determination of corporate performance communication and financial analysts earnings forecasting work are closely intertwined processes. The resulting endogeneity in capital markets information dissemination and use is strongly influenced by a country's governance regime. Results from simultaneous equation regressions show significant interrelationships between financial analysts activities and corporate disclosure transparency for North American firms. Moreover, analyst following underlies corporate disclosure, which ultimately leads to a reduction in the dispersion of analysts earnings forecasts. In contrast, capital markets information dynamics for continental European firms are much weaker.

Suggested Citation

Cormier, Denis and Magnan, Michel and Aerts, Walter, The Association between Web-Based Corporate Performance Disclosure and Financial Analyst Behavior Under Different Governance Regimes. Corporate Governance: An International Review, Vol. 15, Issue 6, pp. 1301-1329, November 2007. Available at SSRN: https://ssrn.com/abstract=1072216 or http://dx.doi.org/10.1111/j.1467-8683.2007.00648.x

Denis Cormier

University du Quebec a Montreal ( email )

P.O. Box 8888, Downtown Station
Succursale Centre Ville School of Management 315 rue Ste-Catherine Est
Montreal, Quebec H3C 3P8
Canada
514-987-3000, ext. 8358 (Phone)
514-987-6629 (Fax)

Michel Magnan

Concordia University - Department of Accountancy ( email )

Montreal, Quebec H3G 1M8
Canada

Walter Aerts (Contact Author)

University of Antwerp ( email )

Prinsstraat 13
Antwerpen, B-2000
Belgium
003232654110 (Phone)
003232654064 (Fax)

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