Overreaction or Underreaction to Intra-Industry Earnings Information Transfer: A Cross-Country Analysis
نویسندگان
چکیده
ABSTRACT We apply the moderated confidence hypothesis (MCH) to investigate overreaction and underreaction in intra-industry earnings information transfers an international setting. MCH predicts that late announcing firms' investors overreact (underreact) early industry peers' news when is imprecise (precise) signals of earnings. Consistent with this notion, we find a large sample firms. To extent country-level environment culture share precision as each other's earnings, are more likely underreact countries richer environment, higher individualism, less uncertainty avoidance. JEL Classifications: M41; G41; G15.
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ژورنال
عنوان ژورنال: Journal of International Accounting Research
سال: 2021
ISSN: ['1558-8025', '1542-6297']
DOI: https://doi.org/10.2308/jiar-2021-086