The Experts below are selected from a list of 66054 Experts worldwide ranked by ideXlab platform
Thorsten Sellhorn - One of the best experts on this subject based on the ideXlab platform.
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mandatory fair value accounting and Information Asymmetry evidence from the european real estate industry
Management Science, 2011Co-Authors: Karl A Muller, Edward J Riedl, Thorsten SellhornAbstract:We examine the effects of mandating the provision of fair value Information for long-lived tangible assets on firms' Information Asymmetry. Specifically, we investigate whether European real estate firms' compulsory adoption of International Accounting Standard 40 (IAS 40; Investment Property), which mandated the provision of investment property fair values in 2005, resulted in reduced Information Asymmetry across market participants. Using as a control group firms that voluntarily provided these fair values prior to the mandatory adoption of IAS 40, we find that mandatory adoption firms exhibit a larger decline in Information Asymmetry, as reflected in lower bid--ask spreads. However, we also find that mandatory adoption firms continue to have higher Information Asymmetry than voluntary adoption firms, which appears partially attributable to the lower reliability of fair values reported by the mandatory adoption firms. Together, this evidence adds to the debate on fair value accounting by demonstrating that common adoption of fair value, even for long-lived tangible assets, under a mandatory reporting regime can reduce, but not necessarily eliminate, Information Asymmetry differences across firms. This paper was accepted by Stefan Reichelstein, accounting.
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mandatory fair value accounting and Information Asymmetry evidence from the european real estate industry
Social Science Research Network, 2011Co-Authors: Karl A Muller, Edward J Riedl, Thorsten SellhornAbstract:We examine the effects of mandating the provision of fair value Information for long-lived tangible assets on firms’ Information Asymmetry. Specifically, we investigate whether European real estate firms’ compulsory adoption of International Accounting Standard 40 - Investment Property (IAS 40), which mandated the provision of investment property fair values in 2005, resulted in reduced Information Asymmetry across market participants. Using as a control group firms that voluntarily provided these fair values prior to the mandatory adoption of IAS 40, we find that mandatory adoption firms exhibit a larger decline in Information Asymmetry, as reflected in lower bid-ask spreads. However, we also find that mandatory adoption firms continue to have higher Information Asymmetry than voluntary adoption firms, which appears partially attributable to the lower reliability of fair values reported by the mandatory adoption firms. Together, this evidence adds to the debate on fair value accounting by demonstrating that common adoption of fair value, even for long-lived tangible assets, under a mandatory reporting regime can reduce, but not necessarily eliminate, Information Asymmetry differences across firms.
Weining Zhang - One of the best experts on this subject based on the ideXlab platform.
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voluntary disclosure and Information Asymmetry evidence from the 2005 securities offering reform
Journal of Accounting Research, 2013Co-Authors: Nemit Shroff, Hal D White, Weining ZhangAbstract:In 2005, the Securities and Exchange Commission enacted the Securities Offering Reform (Reform), which relaxes �gun-jumping� restrictions, thereby allowing firms to more freely disclose Information before equity offerings. We examine the effect of the Reform on voluntary disclosure behavior before equity offerings and the associated economic consequences. We find that firms provide significantly more preoffering disclosures after the Reform. Further, we find that these preoffering disclosures are associated with a decrease in Information Asymmetry and a reduction in the cost of raising equity capital. Our findings not only inform the debate on the market effect of the Reform, but also speak to the literature on the relation between voluntary disclosure and Information Asymmetry by examining the effect of quasi-exogenous changes in voluntary disclosure on Information Asymmetry, and thus a firm's cost of capital.
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voluntary disclosure and Information Asymmetry evidence from the 2005 securities offering reform
SSRN, 2013Co-Authors: Nemit Shroff, Hal D White, Weining ZhangAbstract:In 2005, the SEC enacted the Securities Offering Reform (Reform), which relaxes ‘gun jumping’ restrictions, thereby allowing firms to more freely disclose Information before equity offerings. We examine the effect of the Reform on voluntary disclosure behavior before equity offerings and the associated economic consequences. We find that firms provide significantly more pre-offering disclosures after the Reform. Further, we find that these pre-offering disclosures are associated with a decrease in Information Asymmetry and a reduction in the cost of raising equity capital. Our findings not only inform the debate on the market effect of the Reform, but also speak to the literature on the relation between voluntary disclosure and Information Asymmetry by examining the effect of quasi-exogenous changes in voluntary disclosure on Information Asymmetry, and thus a firm’s cost of capital.
Karl A Muller - One of the best experts on this subject based on the ideXlab platform.
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mandatory fair value accounting and Information Asymmetry evidence from the european real estate industry
Management Science, 2011Co-Authors: Karl A Muller, Edward J Riedl, Thorsten SellhornAbstract:We examine the effects of mandating the provision of fair value Information for long-lived tangible assets on firms' Information Asymmetry. Specifically, we investigate whether European real estate firms' compulsory adoption of International Accounting Standard 40 (IAS 40; Investment Property), which mandated the provision of investment property fair values in 2005, resulted in reduced Information Asymmetry across market participants. Using as a control group firms that voluntarily provided these fair values prior to the mandatory adoption of IAS 40, we find that mandatory adoption firms exhibit a larger decline in Information Asymmetry, as reflected in lower bid--ask spreads. However, we also find that mandatory adoption firms continue to have higher Information Asymmetry than voluntary adoption firms, which appears partially attributable to the lower reliability of fair values reported by the mandatory adoption firms. Together, this evidence adds to the debate on fair value accounting by demonstrating that common adoption of fair value, even for long-lived tangible assets, under a mandatory reporting regime can reduce, but not necessarily eliminate, Information Asymmetry differences across firms. This paper was accepted by Stefan Reichelstein, accounting.
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mandatory fair value accounting and Information Asymmetry evidence from the european real estate industry
Social Science Research Network, 2011Co-Authors: Karl A Muller, Edward J Riedl, Thorsten SellhornAbstract:We examine the effects of mandating the provision of fair value Information for long-lived tangible assets on firms’ Information Asymmetry. Specifically, we investigate whether European real estate firms’ compulsory adoption of International Accounting Standard 40 - Investment Property (IAS 40), which mandated the provision of investment property fair values in 2005, resulted in reduced Information Asymmetry across market participants. Using as a control group firms that voluntarily provided these fair values prior to the mandatory adoption of IAS 40, we find that mandatory adoption firms exhibit a larger decline in Information Asymmetry, as reflected in lower bid-ask spreads. However, we also find that mandatory adoption firms continue to have higher Information Asymmetry than voluntary adoption firms, which appears partially attributable to the lower reliability of fair values reported by the mandatory adoption firms. Together, this evidence adds to the debate on fair value accounting by demonstrating that common adoption of fair value, even for long-lived tangible assets, under a mandatory reporting regime can reduce, but not necessarily eliminate, Information Asymmetry differences across firms.
Chune Young Chung - One of the best experts on this subject based on the ideXlab platform.
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foreign investor trading and Information Asymmetry evidence from a leading emerging market
Applied Economics Letters, 2017Co-Authors: Chune Young Chung, Hyeyoen Kim, Doojin RyuAbstract:ABSTRACTThis article examines the influence of foreign investor trading on Information Asymmetry in the Korean stock market, a representative emerging market characterized by a high level of Information Asymmetry between corporate insiders and outsiders, and among investors. We find a significantly positive relationship between foreign investor trading and the consequent bid–ask spread – the latter of which is considered as a proxy for the degree of Information Asymmetry – on both daily and weekly bases. Our results indicate that active foreign investor trading tends to exacerbate Informational variation.
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the impact of individual investor trading on Information Asymmetry in the korean stock market
The North American Journal of Economics and Finance, 2016Co-Authors: Chune Young Chung, Kainan WangAbstract:Abstract This paper examines the impact of individual investor trading on Information Asymmetry in the market. In particular, we examine the relationship between the trading volume by individual investors and the corresponding bid-ask spread in the Korean stock market, where the majority of the trading activity is driven by individual investors and therefore Information Asymmetry can be evident. We find that high trading activity by individual investors increases the bid-ask spread in a short investment horizon, suggesting that individual investors, as uninformed and unsophisticated traders, amplify the degree of Information Asymmetry in the market through trading.
Kainan Wang - One of the best experts on this subject based on the ideXlab platform.
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the impact of individual investor trading on Information Asymmetry in the korean stock market
The North American Journal of Economics and Finance, 2016Co-Authors: Chune Young Chung, Kainan WangAbstract:Abstract This paper examines the impact of individual investor trading on Information Asymmetry in the market. In particular, we examine the relationship between the trading volume by individual investors and the corresponding bid-ask spread in the Korean stock market, where the majority of the trading activity is driven by individual investors and therefore Information Asymmetry can be evident. We find that high trading activity by individual investors increases the bid-ask spread in a short investment horizon, suggesting that individual investors, as uninformed and unsophisticated traders, amplify the degree of Information Asymmetry in the market through trading.
