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Financial integration, investor protection and imbalanced optimistically biased information timeliness in emerging markets

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Financial integration, investor protection and imbalanced optimistically biased information timeliness in emerging markets. / Zhang, X.; Zhang, Q.; Chen, D.; Gu, J.

In: International Review of Financial Analysis, Vol. 64, 01.07.2019, p. 38-56.

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Zhang, X. ; Zhang, Q. ; Chen, D. ; Gu, J. / Financial integration, investor protection and imbalanced optimistically biased information timeliness in emerging markets. In: International Review of Financial Analysis. 2019 ; Vol. 64. pp. 38-56.

Bibtex

@article{096c6853431b444fa9bf794d798b9bdc,
title = "Financial integration, investor protection and imbalanced optimistically biased information timeliness in emerging markets",
abstract = "Principal-principal conflicts in many emerging markets can lead to an optimistically biased information environment. Using 24 emerging markets during the period 1996–2016, this paper examines how market-level, firm-level financial integration and investor protection quality jointly affect Imbalanced Optimistically Biased Information Timeliness (IOBIT). Results show that financial integration and investor protection quality affect good and bad information timeliness asymmetrically. Market-level financial integration augments IOBIT while firm-level financial integration and investor protection mitigate IOBIT. The effect of firm-level financial integration in mitigating IOBIT is reduced when market-level financial integration increases and/or investor protection becomes stronger. Our analysis enhances our understanding of the benefit-cost trade-off associated with financial integration in affecting information timeliness and the conditional factors in altering this benefit-cost trade-off in emerging markets. {\circledC} 2019 Elsevier Inc.",
keywords = "Emerging markets, Financial integration, Information timeliness, Investor protection",
author = "X. Zhang and Q. Zhang and D. Chen and J. Gu",
year = "2019",
month = "7",
day = "1",
doi = "10.1016/j.irfa.2019.04.006",
language = "English",
volume = "64",
pages = "38--56",
journal = "International Review of Financial Analysis",
issn = "1057-5219",
publisher = "Elsevier Inc.",

}

RIS

TY - JOUR

T1 - Financial integration, investor protection and imbalanced optimistically biased information timeliness in emerging markets

AU - Zhang, X.

AU - Zhang, Q.

AU - Chen, D.

AU - Gu, J.

PY - 2019/7/1

Y1 - 2019/7/1

N2 - Principal-principal conflicts in many emerging markets can lead to an optimistically biased information environment. Using 24 emerging markets during the period 1996–2016, this paper examines how market-level, firm-level financial integration and investor protection quality jointly affect Imbalanced Optimistically Biased Information Timeliness (IOBIT). Results show that financial integration and investor protection quality affect good and bad information timeliness asymmetrically. Market-level financial integration augments IOBIT while firm-level financial integration and investor protection mitigate IOBIT. The effect of firm-level financial integration in mitigating IOBIT is reduced when market-level financial integration increases and/or investor protection becomes stronger. Our analysis enhances our understanding of the benefit-cost trade-off associated with financial integration in affecting information timeliness and the conditional factors in altering this benefit-cost trade-off in emerging markets. © 2019 Elsevier Inc.

AB - Principal-principal conflicts in many emerging markets can lead to an optimistically biased information environment. Using 24 emerging markets during the period 1996–2016, this paper examines how market-level, firm-level financial integration and investor protection quality jointly affect Imbalanced Optimistically Biased Information Timeliness (IOBIT). Results show that financial integration and investor protection quality affect good and bad information timeliness asymmetrically. Market-level financial integration augments IOBIT while firm-level financial integration and investor protection mitigate IOBIT. The effect of firm-level financial integration in mitigating IOBIT is reduced when market-level financial integration increases and/or investor protection becomes stronger. Our analysis enhances our understanding of the benefit-cost trade-off associated with financial integration in affecting information timeliness and the conditional factors in altering this benefit-cost trade-off in emerging markets. © 2019 Elsevier Inc.

KW - Emerging markets

KW - Financial integration

KW - Information timeliness

KW - Investor protection

U2 - 10.1016/j.irfa.2019.04.006

DO - 10.1016/j.irfa.2019.04.006

M3 - Journal article

VL - 64

SP - 38

EP - 56

JO - International Review of Financial Analysis

JF - International Review of Financial Analysis

SN - 1057-5219

ER -