Firms' information environment measures: a literature review with focus on causality
ISSN: 0307-4358
Article publication date: 8 June 2020
Issue publication date: 17 November 2020
Abstract
Purpose
The purpose of this paper is to review the literature that measures the concept of firms' information environment (IE) with focus on the validity of proxies used to measure IE.
Design/methodology/approach
The paper reviews the IE literature using theoretically based categories and analyzes the contextual meaning and use of IE proxies. The review is based on a selection of 284 research articles from 51 journals between 2000 and 2018. A total of 37 different proxy measures of IE are found and analyzed with respect to causality based on categories and the use of IE variables as dependent, independent and control variables.
Findings
The study indicates that the IE measures are heterogeneous and there is a lack of consensus regarding their use. The different conditions used to study IE explain part, but far from all, of this heterogeneity. Furthermore, we find that the use of IE measures is only briefly discussed or motivated among the studies in the sample. These findings suggest a necessary discussion about causality in the use of IE as dependent, independent or control variables.
Originality/value
This study contains new and significant information on IE and IE proxy measures. It provides an extensive literature review and provides a novel typology to analyze IE.
Keywords
Acknowledgements
The authors gratefully acknowledge the assistance and comments by Ola Nilsson, Linnaeus University. Financial support from ‘Jan Wallanders and Tom Hedelius foundation’ and the helpful comments of the two anonymous referees are also acknowledged.
Citation
von Koch, C. and Willesson, M. (2020), "Firms' information environment measures: a literature review with focus on causality", Managerial Finance, Vol. 46 No. 11, pp. 1343-1372. https://doi.org/10.1108/MF-02-2019-0060
Publisher
:Emerald Publishing Limited
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