Foreign analysts and managerial investment learning from stock markets

IF 2.9 3区 经济学 Q2 BUSINESS, FINANCE
Lingmin Xie , Zhian Chen , Donghui Li , Hongping Tan
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引用次数: 0

Abstract

This paper provides evidence on the role of foreign analysts in improving the informativeness of stock prices for corporate managers. Using a large sample of 15,623 firms in 42 economies, we find that foreign analysts improve managerial learning from stock markets as measured in terms of investment-to-price sensitivity. Consistent with the flow of information from global firms to local firms, we directly find that foreign analysts reduces firms’ price delay to global market information. We also dismiss the concern that Tobin's Q captures no additional information that is reflected only in the stock price. Cross-sectional analyses indicate that the positive effect of foreign analysts on managerial learning is more pronounced for firms in developed economies, firms with better financial positions, firms in less competitive industries, and firms with less foreign ownership. Our findings provide cross-country evidence on the informative role of foreign analysts for managers, which in turn strengthens the real effect of financial markets.

外国分析师和管理投资从股票市场学习
本文提供了证据,证明外国分析师在提高公司管理层的股价信息质量方面的作用。通过对42个经济体的15,623家公司的大样本分析,我们发现,以投资对价格的敏感性来衡量,外国分析师提高了从股票市场的管理学习。与信息从全球企业向本地企业的流动一致,我们直接发现外国分析师降低了企业对全球市场信息的价格延迟。我们也不考虑托宾Q没有捕捉到只反映在股票价格上的额外信息。横断面分析表明,外国分析师对管理学习的积极影响对于发达经济体的公司、财务状况较好的公司、竞争较弱的行业的公司和外国所有权较少的公司更为明显。我们的研究结果为外国分析师对管理者的信息作用提供了跨国证据,这反过来又加强了金融市场的实际影响。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
CiteScore
7.30
自引率
4.80%
发文量
25
审稿时长
30 days
期刊介绍: International trade, financing and investments have grown at an extremely rapid pace in recent years, and the operations of corporations have become increasingly multinationalized. Corporate executives buying and selling goods and services, and making financing and investment decisions across national boundaries, have developed policies and procedures for managing cash flows denominated in foreign currencies. These policies and procedures, and the related managerial actions of executives, change as new relevant information becomes available. The purpose of the Journal of Multinational Financial Management is to publish rigorous, original articles dealing with the management of the multinational enterprise. Theoretical, conceptual, and empirical papers providing meaningful insights into the subject areas will be considered. The following topic areas, although not exhaustive, are representative of the coverage in this Journal. • Foreign exchange risk management • International capital budgeting • Forecasting exchange rates • Foreign direct investment • Hedging strategies • Cost of capital • Managing transaction exposure • Political risk assessment • International working capital management • International financial planning • International tax management • International diversification • Transfer pricing strategies • International liability management • International mergers.
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