题 目：CULTURAL PROXIMITY AND THE PROCESSING OF FINANCIAL INFORMATION
报告人：中欧国际工商学院助教授 余方
时 间：3月26日 14:30
地 点：会计学院206报告厅
个人主页：http://www.ceibs.edu/faculty_c/cv/42612.shtml
文章摘要：
This paper examines how a shared cultural background between analysts and firms under coverage affects information asymmetry in financial markets. To disentangle cultural proximity from geographic proximity, we extract a sample of firms publicly traded in the U.S. but headquartered in regions sharing Chinese culture (“Chinese firms”), and identify a group of U.S. analysts of Chinese ethnic origin. We find that analysts of Chinese ethnicity issue more accurate forecasts about earnings of Chinese firms. The rise in forecast precision is more pronounced among first-generation Chinese immigrants. Market reaction is stronger if analysts of Chinese ethnicity revise their forecasts upwards or issue favorable recommendations about a Chinese firm. Our results indicate that cultural proximity mitigates information asymmetry that adversely affects foreign firms, especially those from emerging markets.