کد مقاله | کد نشریه | سال انتشار | مقاله انگلیسی | نسخه تمام متن |
---|---|---|---|---|
1006029 | 938108 | 2009 | 18 صفحه PDF | دانلود رایگان |
![عکس صفحه اول مقاله: The impact of accounting information quality on the mispricing of accruals: The case of FRS3 in the UK The impact of accounting information quality on the mispricing of accruals: The case of FRS3 in the UK](/preview/png/1006029.png)
We exploit a unique setting of accounting regulation change to examine how accounting information quality affects the well-documented accrual anomaly. We show a significant reduction in the negative return predictability of accruals among UK companies with poorer accounting information quality following the introduction of Financial Reporting Standard No. 3: Reporting Financial Performance (FRS3). While the functional fixation hypothesis attributes the mispricing of accruals to the judgemental error of end-users of information, our findings suggest that the supply side of information also plays a crucial role. Our results provide evidence that regulatory interventions seeking to improve accounting information quality can reduce the mispricing of securities in the capital market.
Journal: Journal of Accounting and Public Policy - Volume 28, Issue 3, May–June 2009, Pages 189–206