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Do Culture and Cross-Border Listings Influence Global Analysts Behavior and Disclosure Practices
Journal article   Peer reviewed

Do Culture and Cross-Border Listings Influence Global Analysts Behavior and Disclosure Practices

Gordian A Ndubizu
Review of accounting & finance, v 1(3), pp 28-41
01 Mar 2002

Abstract

Cross-border listing Capital market Analysts following Disclosure practices Culture
This paper examines the influence of culture, globalization and investor protection on the number of analysts following firms in each country. The extant literature shows that the number of analysts following firms is positively associated with information disclosure practices of firms. Consistent with the literature, the number of analysts following firms in each country is used as a proxy representing disclosure practices. The evidence shows that cultural distance from U.S. moves positively with the number of analysts in each country. This result suggests that culture influences global analyst behavior. Globalization of capital markets appears to increase the number of financial analysts across countries. Specifically, each country cross-border listings on U.S. markets and the size of home capital market move positively with analyst services. These findings suggest that globalization also influences global analyst behavior.

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