The Value‐Relevance of Voluntarily Disclosed Quarterly Foreign Sales Data of U.S. Multinational Corporations

This paper examines the value‐relevance of voluntarily disclosed quarterly sales data on the foreign operations of U.S. multinational corporations included in quarterly earnings announcements. Using a short‐window event‐study methodology with risk‐adjusted returns, we find that voluntarily disclosed quarterly foreign sales of U.S. multinational corporations is value‐relevant to equity investors. The empirical results also show that in most instances, quarterly foreign sales data are valued at a substantially higher rate than quarterly domestic sales data.