International Corporate Development Activities and Information Disclosures in Earnings Calls

We examine firms’ international alliances and acquisitions and their implications for firms’ corporate communications in earnings calls. Building upon and extending existing research, we argue that international alliances and acquisitions directly augment the information asymmetry problem between firms and capital markets. By delving into how executives and analysts interact to address asymmetries in information during earnings calls, we bring new attention to financial markets as an important factor market in research on internationalization. Findings from detailed information on executives’ information disclosures as well as analysts’ questions provide evidence on how international corporate activity affects the way in which firms engage with capital markets and the investing public.