Title
Disclosure of non-financial information : relevant to financial analysts? Disclosure of non-financial information : relevant to financial analysts?
Author
Faculty/Department
Faculty of Applied Economics
Publication type
article
Publication
Leuven ,
Subject
Economics
Source (journal)
Review of business and economic literature. - Leuven, 2012, currens
Volume/pages
58(2013) :4 , p. 375-405
ISSN
2034-7677
2034-7685
vabb
c:vabb:378954
Carrier
E
Target language
English (eng)
Affiliation
University of Antwerp
Abstract
The decline in the relevance of financial statement information to value firms leads to calls from organizational stakeholders to convey non-financial information in order to be able to judge firms financial performance and value. This literature review aims to report extant literature findings on the use of corporate non-financial information by sell-side financial analysts, the information intermediaries between corporate management and investors. Prior studies highlight that financial analysts rely upon corporate non-financial information in their firm assessments. When firms to a larger extent disseminate non-financial information, financial analysts are able to submit more accurate earnings forecasts and the consensus among financial analysts earnings estimates is larger. However, the literature review also illustrates that financial analysts ascribe more weight to particular types of non-financial information. For instance, they consider forward-looking information or strategy and product-related information more relevant in firm valuation compared to intellectual capital information or social and environmental information.
E-info
https://repository.uantwerpen.be/docman/iruaauth/8ae7ef/f2bf41249f5.pdf
Handle