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Les professeurs M. Erkens et H. Stolowy distingués par la préstigieuse "American Accounting Association"

8 avril 2013

Michael Erkens et Hervé Stolowy ont reçu le prix de la meilleure communication à la conférence de la section internationale de l'AAA (American Accounting Association) (Savannah, Georgie, février 2013) pour leur article intitulé: "Evidence on the impact of adopting English as an external reporting language on foreign investment, analyst following, and liquidity" (en coll. avec Thomas Jeanjean et Teri Yohn).

Michael Erkens et Hervé Stolowy Professeurs à HEC, département Comptabilité Contrôle de Gestion, ont reçu le prix de la meilleure communication à la conférence de la section internationale de l'AAA (American Accounting Association) (Savannah, Georgie, février 2013) pour leur article intitulé: "Evidence on the impact of adopting English as an external reporting language on foreign investment, analyst following, and liquidity" (disponible sur SSRN) (en coll. avec Thomas Jeanjean et Teri Yohn).

Abstract: 

This study investigates whether adopting English as an external reporting language is associated with increased foreign investment, liquidity, and/or analyst following in non-English speaking company’s stock. Specifically, we examine a sample of companies that initiate the issuance of an annual report in English in addition to the local language annual report. Using a difference in-difference design with a propensity score matched control sample, we find that foreign ownership, liquidity, and analyst following increase significantly around the adoption of English as an external reporting language. We also find that the benefits of adopting English as an external reporting language do not appear to depend on the pervasiveness of the use of the local language. Finally, we perform a time-series analysis and find that adopting English as a reporting language is associated with decreases in information asymmetry (bid-ask spreads and zero return days) in the year of adoption, increases in analyst following in the year after adoption, and increases in foreign ownership two years after adoption. These results suggest that the economic benefits of adopting English as an external reporting language first become evident through decreased information asymmetry. These results are consistent with the notion that the language used in the annual report can act as a barrier to investment for some investors and that issuing an annual report in English reduces investors’ information processing costs.




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