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Business Strategy and Intra-Industry Information Transfers

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  • Peng Guo

Abstract

This study examines whether business strategy affects information transfers from one firm to its industry peers. I use Miles and Snow’s (1978, 2003) organizational typology to classify firms along a continuum with innovative ‘prospector’ firms at one end and stable low-growth ‘defender’ firms at the other. When a firm announces its earnings, the information transfer to other peer firms in the same industry is weaker (stronger) when the announcing firm is a prospector (defender). In addition, information transfers from the announcing firm to industry peers are weaker (stronger) when the industry peer is a prospector (defender). Taken together, the evidence in this paper suggests that firms’ business strategies affect the strength of information transfers.

Suggested Citation

  • Peng Guo, 2017. "Business Strategy and Intra-Industry Information Transfers," Accounting and Finance Research, Sciedu Press, vol. 6(3), pages 1-1, August.
    • Handle: RePEc:jfr:afr111:v:6:y:2017:i:3:p:1
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    References listed on IDEAS

    as
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    6. Jerry C.Y. Han & John J. Wild, 1997. "Timeliness of Reporting and Earnings Information Transfers," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 24(3), pages 527-540.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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