The Volatility of Return Revisions and Financial Statement Literacy in Emerging Markets: The Case of Cross-listed Chinese Firms

Jeffrey L. Callen, Karen M.Y. Lai, Xiangdong Wei

Research output: Journal article publicationJournal articleAcademic researchpeer-review

3 Citations (Scopus)

Abstract

If so, this conjecture implies that foreign (domestic) investors are more likely to revise their return expectations to cash flow (discount rate) news. It also implies that cash flow news and discount rate news are likely to be uncorrelated when evaluating return revisions by domestic investors, whereas cash flow news and discount rate news are likely to be negatively correlated when evaluating return revisions by foreign investors. The Chinese equity markets yield robust empirical results that are consistent with both hypotheses.
Original languageEnglish
Pages (from-to)572-596
Number of pages25
JournalJournal of Business Finance and Accounting
Volume43
Issue number5-6
DOIs
Publication statusPublished - 1 Jan 2016

Keywords

  • Chinese equity markets
  • domestic versus foreign investors
  • variance decomposition

ASJC Scopus subject areas

  • Accounting
  • Business, Management and Accounting (miscellaneous)
  • Finance

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