Login | Register

Accounting disclosure and information environment : a comparative study of U.S. and Japanese security markets with dynamic modelling

Title:

Accounting disclosure and information environment : a comparative study of U.S. and Japanese security markets with dynamic modelling

Su, Xijia (1996) Accounting disclosure and information environment : a comparative study of U.S. and Japanese security markets with dynamic modelling. PhD thesis, Concordia University.

[thumbnail of NQ25922.pdf]
Preview
Text (application/pdf)
NQ25922.pdf
5MB

Abstract

Considerable efforts have been made by accounting researchers in the last three decades to investigate whether there is a stable and significant association between stock prices and accounting earnings. This study seeks to shed light on this issue by adding to the price-earnings regression accounting earnings from both past and future periods. The pattern of response coefficients is expected to be different for past versus future earnings, and different firms that are operating in different informational and institutional environments. This study applies the analysis of changes in regression coefficients to a comparative study between the U.S. and Japan. Two aspects of information asymmetry between investors and management are identified and proxied in this study: (1) the availability of information, and (2) the willingness, resources, and ability to process the available information. The models used to test the above-mentioned proxies of information asymmetry are developed from the notion that current stock prices are associated with both current and future earnings, and accounting earnings include a surprise component and a stale component. The resulting indefinite lead/lag combined model is operationalized into two definite lead/lag models and an autoregressive model. The study finds that the U.S. and Japanese information environments are significantly different, evidenced by systematic differences in the patterns of coefficients from different samples and subsamples. It is also found that in general, investors in large firms are better informed about firms' future opportunities than those investing in small firms. The same phenomenon is also observed for institutional versus individual investors, and for Japanese versus U.S. investors. The U.S. markets are characterised by the availability of abundant information from competing sources, especially for large firms, and by the capability of investment institutions. On the other hand, the Japanese investors seemingly have more confidence in the persistence of the reported earnings than U.S. investors.

Divisions:Concordia University > John Molson School of Business
Item Type:Thesis (PhD)
Authors:Su, Xijia
Pagination:viii, 141 leaves ; 29 cm.
Institution:Concordia University
Degree Name:Ph. D.
Program:Administration
Department (as was):Faculty of Commerce and Administration
Date:1996
Thesis Supervisor(s):Kim, Jeong-Bon
Identification Number:HF 5658 S83 1996
ID Code:227
Deposited By: Concordia University Library
Deposited On:27 Aug 2009 17:10
Last Modified:20 Oct 2022 18:24
Related URLs:
All items in Spectrum are protected by copyright, with all rights reserved. The use of items is governed by Spectrum's terms of access.

Repository Staff Only: item control page

Downloads per month over past year

Research related to the current document (at the CORE website)
- Research related to the current document (at the CORE website)
Back to top Back to top