Does earnings quality affect information asymmetry? Evidence from trading costs

• Main Authors: BHATTACHARYA, Nilabhra, Desai, Hemang, Venkataraman, Kumar
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2012
• Subjects: Accounting information; Financial markets; Capital allocation; Earnings quality; Analytical models; Accounting; Corporate Finance
• Online Access: https://ink.library.smu.edu.sg/soa_research/959; https://ink.library.smu.edu.sg/context/soa_research/article/1958/viewcontent/Contemporary_Accting_Res___2012___Bhattacharya___Does_Earnings_Quality_Affect_Information_Asymmetry__Evidence_from_Trading.pdf
• Institution: Singapore Management University

Information asymmetry in financial markets relates to the idea that one party to a transaction has better information than the other. Since financial reporting involves the transmission of value-relevant enterprise information, we investigate whether the quality of reported earnings can contribute t...