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

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  • Taran, Alina
  • Simga-Mugan, Can
  • Mironiuc, Marilena

Abstract

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.

Suggested Citation

  • Taran, Alina & Simga-Mugan, Can & Mironiuc, Marilena, 2021. "Country-segment disclosure of foreign operations from Central and Eastern Europe: Country-level determinants and value relevance," Journal of Multinational Financial Management, Elsevier, vol. 62(C).
    • Handle: RePEc:eee:mulfin:v:62:y:2021:i:c:s1042444x21000414
    DOI: 10.1016/j.mulfin.2021.100718
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    More about this item

    Keywords

    Country-segment disclosure; Foreign subsidiaries; Stock price and returns; Value relevance; Host-country conditions; Tax rates;
    All these keywords.

    JEL classification:

    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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