uu.seUppsala University Publications
Change search
Link to record
Permanent link

Direct link
BETA
Ström, Niklas
Publications (6 of 6) Show all publications
Ström, N. (2006). Essays on Information Disclosure: Content, Consequence and Relevance. (Doctoral dissertation). Uppsala: Företagsekonomiska institutionen
Open this publication in new window or tab >>Essays on Information Disclosure: Content, Consequence and Relevance
2006 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

This thesis provides new insight into the information environments of Initial Public Offerings (IPOs) and analysts’ equity reports. The thesis consists of four essays that address the issues of firm disclosure and the relevance of information for analysts and investors in the capital market. The research question concerns the role of accounting information on the capital market. The present thesis entails the following analyses:

(i) An analysis of the content in IPO prospectuses

(ii) Cross-sectional analyses on factors affecting prospectus disclosure

(iii) An analysis of the short- and long-run returns of IPOs

(iv) An analysis of the relevance of IPO disclosure on IPO valuation

(v) An analysis of non-financial information content in analysts’ reports

(vi) An analysis of the valuation relevance of non-financial information

The first essay examines prospectus disclosure and looks at explanations as to the factors that drive the disclosure. The findings reveal that IPO firms provide more information in their prospectus in comparison with non-IPO firms. The second essay analyzes how prospectus disclosure affects IPO valuation in the secondary market. It is hypothesized that increased disclosure in the prospectus decreases valuation uncertainty, which implicates lower underpricing for the IPO firm. The essay shows that Swedish IPOs are underpriced. However, disclosure is not found to be related to underpricing. The third essay examines the extent and type of forecasts provided in the prospectuses and the value relevance of this information. The study reveals a reduction in profit and sales forecast disclosures while at the same time shows an increase in sales growth forecasts for the period 1996-2004. The essay finds that forecast information is particularly relevant to investors and analysts. Forecast disclosing firms demonstrate a significantly lower underpricing and lower long-run return compared with non-forecast disclosing firms. The fourth essay concerns the valuation relevance of non-financial information contained in analysts’ equity reports. The essay notes that valuation relevance of non-financial information is positively related to the size of the target firm. Moreover, analysts were observed to rely more heavily on forward-looking non-financial information than historical non-financial information in their valuation.

Place, publisher, year, edition, pages
Uppsala: Företagsekonomiska institutionen, 2006. p. 47
Series
Doctoral thesis / Företagsekonomiska institutionen, Uppsala universitet, ISSN 1103-8454 ; 120
Keywords
Business studies, IPO, prospectus, disclosure, valuation, underpricing, Företagsekonomi
Identifiers
urn:nbn:se:uu:diva-6988 (URN)
Public defence
2006-10-12, Hörsal 2, Ekonomikum, Kyrkogårdsgatan 10, Uppsala, 13:15 (English)
Opponent
Supervisors
Available from: 2006-08-31 Created: 2006-08-31 Last updated: 2009-04-20Bibliographically approved
Ström, N. (2006). IPO pricing - does prospectus disclosure matter?. In: Paper presented at the European Accounting Association Conference in Dublin 2006.
Open this publication in new window or tab >>IPO pricing - does prospectus disclosure matter?
2006 (English)In: Paper presented at the European Accounting Association Conference in Dublin 2006, 2006Conference paper, Published paper (Other (popular scientific, debate etc.))
Keywords
IPOs, prospectus, disclosure, information asymmetry, disclosure index
Identifiers
urn:nbn:se:uu:diva-82905 (URN)
Available from: 2006-10-10 Created: 2006-10-10
Ström, N. (2006). Prospectus forecast information - content and relevance. In: Paper presented at the Financial reporting and business communication conference, Cardiff 2006.
Open this publication in new window or tab >>Prospectus forecast information - content and relevance
2006 (English)In: Paper presented at the Financial reporting and business communication conference, Cardiff 2006, 2006Conference paper, Published paper (Other (popular scientific, debate etc.))
Keywords
IPOs, prosepectus, underpricing, forecast disclosure, forecast accuracy
Identifiers
urn:nbn:se:uu:diva-82907 (URN)
Available from: 2006-10-10 Created: 2006-10-10
Flöstrand, P. & Ström, N. (2006). The valuation relevance of non-financial information. Management Research News, 29(9), 580-597
Open this publication in new window or tab >>The valuation relevance of non-financial information
2006 (English)In: Management Research News, Vol. 29, no 9, p. 580-597Article in journal (Refereed) Published
Abstract [en]

Abstract:

Purpose – Research has called for increased relevance of business reporting. A step towards that goal is an increased disclosure of non-financial information. At the present time, non-financial information is mostly provided on a voluntary basis.

Design/methodology/approach – Valuation relevance of non-financial information is studied by examining the information content of 200 analyst reports written on a respective number of firms listed in the S&P 500 index, while simultaneously performing a disclosure study of non-financial information by the same 200 firms in their annual reports.

Findings – We found the valuation relevance of non-financial information to be related to the size of the target firm. Further, analysts’ use of non-financial information is related to the level of non-financial information in the 10-k report of the target firm. Finally, analysts tend to rely more heavily on forward-looking non-financial information than on historical non-financial information.

Practical implications – The findings in this paper have implications for policy makers, preparers of business reporting, and others having to make judgments on information usefulness.

Originality/value – This study looks at the valuation relevance of non-financial information, as opposed to earlier studies that have judged the usefulness of non-financial information by measuring its value relevance. Information is regarded to have valuation relevance if it is used by analysts in the valuation process. Hence, valuation relevance offers an alternative way of measuring information usefulness.

Keywords
Management information, financial information, information disclosure, accounting valuations
Identifiers
urn:nbn:se:uu:diva-82712 (URN)
Available from: 2006-09-29 Created: 2006-09-29 Last updated: 2011-01-11
Ström, N. (2004). Initial public offerings disclosure strategy. In: Paper presented at the European Accounting Association Conference in Prague 2004.
Open this publication in new window or tab >>Initial public offerings disclosure strategy
2004 (English)In: Paper presented at the European Accounting Association Conference in Prague 2004, 2004Conference paper, Published paper (Other (popular scientific, debate etc.))
Keywords
IPOs, prospectus, disclosure, information asymmetry, disclosure index
Identifiers
urn:nbn:se:uu:diva-82904 (URN)
Available from: 2006-10-10 Created: 2006-10-10
Ström, N. (2004). IPOs investor relations and Internet financial reporting.
Open this publication in new window or tab >>IPOs investor relations and Internet financial reporting
2004 (English)Report (Other scientific)
Publisher
p. 20
Series
Working paper
Keywords
IPOs, Internet financial reporting, investor relations, disclosure
Identifiers
urn:nbn:se:uu:diva-82908 (URN)
Available from: 2006-10-04 Created: 2006-10-04
Organisations

Search in DiVA

Show all publications