Suresh Radhakrishnan "is an Ashbel Smith Professor of Accounting and Information Management, Director of Research at the Institute for Excellence in Corporate Governance, and a Visiting Research Fellow at various Asian universities." His research interests include:
Measurement and valuation of intangibles
Corporate Social Responsibility
Value of corporate governance and its impact on quality of information
Value of risk management, information quality and earnings quality
The effect of performance measurement on behavior and value
The role of information and performance measurement in quality and delay cost management
Standalone corporate social responsibility (CSR) reports vary considerably in the content of information released due to their voluntary nature. In this study, we develop a disclosure score based on the tone, readability, length, and the numerical and horizon content of CSR report narratives, and examine the relationship between the CSR disclosure scores and analyst forecasts. We find that CSR reporters with high disclosure scores are associated with more accurate forecasts, whereas low score CSR reporters are not associated with more accurate forecasts than firms who do not issue CSR reports. The findings are robust to controlling for firm characteristics including CSR activity ratings and financial narratives. The findings are driven by experienced CSR reporters rather than first-time CSR reporters. Together, our findings suggest that the content of CSR reports helps to improve analyst forecast accuracy, and this relationship is more pronounced for CSR reports with more substantial content.
(Informs) Fung, Simon Yu Kit; Gul, Ferdinand A.; Radhakrishnan, Suresh; 2003051787 (Radhakrishnan, S)
We examine the relationship between investment banks' initial public offering (IPO) market shares and their prior IPO underpricing in the new IPO market for China-based companies on the Hong Kong Stock Exchange. To gain expertise in Chinese business practices, investment banks have the incentive to obtain business in this new IPO market by providing high offer prices to the issuer, leading to less underpricing and less money on the table. We hypothesize and find that the less an investment bank underprices China-based company IPOs, the greater its subsequent market share of China-based company IPOs in the Hong Kong Stock Exchange. Furthermore, this relationship is driven by a bank's initial China-based company IPO deals. These results suggest that in new IPO markets, investment banks' initial market shares, obtained through lower underpricing, help them grow their market shares in later periods, possibly through the expertise gained in the initial business.