Boğaziçi University, Department of Management Research Seminar Series Welcomes 

Özer Asdemir 

From University of St Thomas.

Venue: IB 204

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Short Bio:

Özer Asdemir is an Associate Professor of Accounting at University of St Thomas. Dr. Asdemir earned his PhD in Management Science with a concentration in Accounting from the University of Texas at Dallas in 2005. His research interests include intangibles and R&D valuation, impact of financial intermediaries on intangible valuation, impact of investor sophistication and informed trading on intangible valuation, impact of accounting information quality on valuation.

Abstract of the Talk:

In this paper, we investigate the impact of firm strategy on firms’ information environment by focusing on the relation between firm strategy and the properties of analyst’ information. We argue that the sum of common and idiosyncratic information content of a firm depends on how well the firm follows its chosen strategy. Second, we argue that financial analysts will see more opportunities for value addition in differentiators, and hence, will gravitate more towards such firms. We also argue that individual analyst’s private information will be a greater percentage of total information for a firm pursuing a differentiation strategy than for a firm pursuing a cost leadership strategy. Our results confirm our hypotheses and show that the sum of common and idiosyncratic information increases to the degree a firm pursues either a cost leadership strategy or a differentiation strategy. Furthermore, our results reveal that analyst consensus decreases to the extent that a firm pursues a differentiation strategy and increases to the extent a firm pursues a cost leadership strategy.