Economic Development and the Value-Relevance of Accounting Information: A Disclosure Transparency Perspective
Extending prior studies which suggest that the disclosure practice of developed economy entities tends to be more transparent than that of emerging economy entities, this study investigates whether such differences in the degree of disclosure transparency translate into different levels of value-relevance of their accounting summary measures. Consistent with theories that link disclosure quality with the impact of disclosure on investors' decisions, the evidence indicates that the accounting summary measures of developed economy entities are more value-relevant than those of emerging economy entities in the US stock market. This finding has some implications for the current policy debate in IASB regarding accounting for emerging economy entities.
Accounting | Growth and Development
Accounting Information System
Review of Accounting and Finance
PANG, Yang Hoong and Kang, Tony.
Economic Development and the Value-Relevance of Accounting Information: A Disclosure Transparency Perspective. (2005). Review of Accounting and Finance. 4, (1), 5-31. Research Collection School Of Accountancy.
Available at: http://ink.library.smu.edu.sg/soa_research/149