Financial statement comparability and expected crash risk
Research output: Journal Publications and Reviews › RGC 21 - Publication in refereed journal › peer-review
Author(s)
Related Research Unit(s)
Detail(s)
| Original language | English |
|---|---|
| Pages (from-to) | 294-312 |
| Journal / Publication | Journal of Accounting and Economics |
| Volume | 61 |
| Issue number | 2-3 |
| Online published | 11 Jan 2016 |
| Publication status | Published - Apr 2016 |
Link(s)
Abstract
This study examines the impact of financial statement comparability on ex ante crash risk. Using the comparability measures of De Franco et al. (2011), we find that expected crash risk decreases with financial statement comparability, and this negative relation is more pronounced in an environment where managers are more prone to withhold bad news. We also provide evidence that comparability can mitigate the asymmetric market reaction to bad versus good news disclosures. Our results suggest that financial statement comparability disinclines managers from bad news hoarding, which reduces investors' perceptions of a firm's future crash risk.
Research Area(s)
- Bad news hoarding, Expected crash risk, Financial statement comparability
Bibliographic Note
Full text of this publication does not contain sufficient affiliation information. With consent from the author(s) concerned, the Research Unit(s) information for this record is based on the existing academic department affiliation of the author(s).
Citation Format(s)
Financial statement comparability and expected crash risk. / Kim, Jeong-Bon; Li, Leye; Lu, Louise Yi et al.
In: Journal of Accounting and Economics, Vol. 61, No. 2-3, 04.2016, p. 294-312.
In: Journal of Accounting and Economics, Vol. 61, No. 2-3, 04.2016, p. 294-312.
Research output: Journal Publications and Reviews › RGC 21 - Publication in refereed journal › peer-review
