Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/313246 
Authors: 
Year of Publication: 
2017
Citation: 
[Journal:] Journal of Capital Markets Studies (JCMS) [ISSN:] 2514-4774 [Volume:] 1 [Issue:] 1 [Year:] 2017 [Pages:] 5-9
Publisher: 
Emerald, Bingley
Abstract: 
Purpose - The purpose of this paper is to examine the usefulness of statistical studies of financial reports and stock market data for improving corporate financial reports. Design/methodology/approach - Analytical writing. Findings - It is often claimed that statistical studies of co-variation between financial and stock market data can help set better financial reporting policy. Such co-variation, even when it can be estimated, tells us little about which financial reports help to make better financial decisions. A case in support of such claims remains to be made. Practical implications - The readers are advised to be extremely careful in drawing inferences from studies of co-variation between accounting and stock market data for financial reporting policy. Social implications - Inference from accounting empirical studies to policy needs better rationale to avoid bad policy consequences. Originality/value - This paper raises original questions about policy inferences from a large class of empirical research in accounting.
Subjects: 
Efficient markets
Financial reporting policy
Statistical co-variation
JEL: 
M41
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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