ePrints

Predictive gains to segmental disclosure matrices, geographic information and industry sector comparability

Lookup NU author(s): Wenchao Kou, Professor Simon HussainORCiD

Downloads

Full text for this publication is not currently held within this repository. Alternative links are provided below where available.

Abstract

The aim of this study is to provide a detailed analysis of the multi-dimensional characteristics of segmental reporting, and their impact on improving investor-insight. We do this by examining the ability of segmental reporting characteristics among FTSE-100 firms to explain variation in the accuracy of analysts' forecasts of earnings per share. We find that analyst-insight is significantly improved by the provision of data within a business-geographical matrix format, consistent with prior 'laboratory' evidence and UK analysts' stated opinions in surveys. We also find that analyst-insight is improved where firms provide information regarding differences between their geographic markets and origins. In addition, analysts obtain improved insight from business segments that have a high degree of comparability to their respective industry sectors and where geographic segments are reported in a detailed manner. © 2007 Elsevier Ltd. All rights reserved.

Publication metadata

Author(s): Kou W, Hussain S

Publication type: Article

Publication status: Published

Journal: British Accounting Review

Year: 2007

Volume: 39

Issue: 3

Pages: 183-195

ISSN (print): 0890-8389

ISSN (electronic): 1095-8347

Publisher: Academic Press

URL: http://dx.doi.org/10.1016/j.bar.2007.05.002

DOI: 10.1016/j.bar.2007.05.002

Altmetrics

Share