On the Value Relevance of Asymmetric Financial Reporting Policies

Author: SUIJS, JEROEN

Source: Journal of Accounting Research, Volume 46, Number 5, December 2008 , pp. 1297-1321(25)

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Abstract:

This paper considers an overlapping generations model where investors trade in a firm's stock. Investment risk is partly determined by the volatility of the stock price at which current investors can sell their shares to the next generation of investors. It is shown that asymmetric reporting of good and bad news is value relevant as it affects the allocation of risk among future generations of shareholders.

Document Type: Research article

DOI: http://dx.doi.org/10.1111/j.1475-679X.2008.00309.x

Affiliations: 1: Department of Accounting and Control, Rotterdam School of Management, Erasmus University. The research of this author has been made possible by a fellowship of the Royal Netherlands Academy of Arts and Sciences. This paper has benefited from the

Publication date: 2008-12-01