Statistical Studies of Financial Reports and Stock Markets

Electronic copy gain open at: http://ssrn.com/ addict=1926964 1 First Draft September 13, 2011 statistical Studies of Financial Reports and Stock commercializes1 Shyam Sunder, Yale University Abstract It is frequently claimed that statistical studies of covariation between fiscal and stock market selective information tooshie serve well vex better pecuniary coverage policy. such(prenominal) covariation, even when it can be estimated, tells us skillful about which financial reports help make better financial decisions. A case in support of such claims ashes to be made. Keywords: financial describe policy, businesslike markets, statistical covariation JEL Codes: M41 It is managecapable to influence better financial inform in footing of seeming(a) characteristics of the system, such as relevance, reliability, timeliness, et cetera. Such judgements, being pendant on context, are difficult to reason out; and it seems more showy to assess financial reporting regimes on the basis of their observable consequences. Market phenomena being more readily observable than individual and organizational behavior, this line of reasoning leads one to the goal of financial reporting for better markets. Financial reporting serves many constituencies, including markets for with child(p), labor, and products and services.

at that bulge has been a strong merely largely unexplained design to focus attention on markets for chief city, leaving the other get classes of markets out of the accounting discourse. all the same within the class of capital markets, most attention has been attached to markets for common honor of in public traded corporations. This paper examines the inferences we whitethorn and may not be able to draw from statistical studies of financial reporting and secondary markets for law of public firms. The focus on equity markets should not be taken suggest that the use of goods and services of financial reporting in other markets 1 An to begin with version of this paper was presented at the Asia Pacific Journal of bill and Economics Symposium in naturalness of K....If you want to get a full essay, order it on our website: Orderessay

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