Title

Economic Development and the Value-Relevance of Accounting Information: A Disclosure Transparency Perspective

Publication Type

Journal Article

Publication Date

2005

Abstract

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.

Discipline

Accounting | Growth and Development

Research Areas

Accounting Information System

Publication

Review of Accounting and Finance

Volume

4

Issue

1

First Page

5

Last Page

31

ISSN

1475-7702

Identifier

10.1108/eb043416

Publisher

Emerald