Country-segment disclosure of foreign operations from Central and Eastern Europe: Country-level determinants and value relevance


Taran A., Simga-Mugan C., Mironiuc M.

JOURNAL OF MULTINATIONAL FINANCIAL MANAGEMENT, cilt.62, 2021 (SSCI) identifier identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 62
  • Basım Tarihi: 2021
  • Doi Numarası: 10.1016/j.mulfin.2021.100718
  • Dergi Adı: JOURNAL OF MULTINATIONAL FINANCIAL MANAGEMENT
  • Derginin Tarandığı İndeksler: Social Sciences Citation Index (SSCI), Scopus, International Bibliography of Social Sciences, Business Source Elite, Business Source Premier, EconLit
  • Anahtar Kelimeler: Country-segment disclosure, Foreign subsidiaries, Stock price and returns, Value relevance, Host-country conditions, Tax rates, IFRS 8, CORPORATE DISCLOSURE, CAPITAL-MARKETS, TAX HAVENS, EARNINGS, IMPACT, LOCATION, QUALITY, COMPETITION, INVESTMENT
  • Orta Doğu Teknik Üniversitesi Adresli: Evet

Özet

Operating segments reporting represents a potential source of information about corporate foreign operations. This paper investigates the country-segment disclosure related to Central and Eastern European (CEE) operations - regarded as potential reporting segments - of multinational corporations (MNCs). The empirical analysis indicates limited information on country segments in general, and a few country segments for CEE operations. The probability of country-segment disclosure depends on size of operations, and host-country economic conditions such as financial risk, competitiveness, ease of doing business and tax rates. The value relevance analysis indicates a significant negative influence of country-segment disclosure of CEE operations on stock prices. These findings provide insights about country-segment disclosure and suggest policy implications of managerial approach for operating segments reporting.