Full metadata record
DC Field | Value | Language |
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dc.contributor.author | Dontoh, Alex | - |
dc.contributor.author | Radhakrishnan, Suresh | - |
dc.contributor.author | Ronen, Joshua | - |
dc.date.accessioned | 2008-06-04T15:08:00Z | - |
dc.date.available | 2008-06-04T15:08:00Z | - |
dc.date.issued | 2000-08-09 | - |
dc.identifier.uri | http://hdl.handle.net/2451/27448 | - |
dc.description.abstract | Recently, a growing body of literature has suggested that financial statements have lost their value relevance because of a shift from a traditional capital-intensive economy to a hightechnology, service-oriented economy. These conclusions are based on studies that find a temporal decline in the association between stock prices and accounting information (earnings and book values). This paper empirically tests a theoretical prediction arising from the Noisy Rational Expectations Equilibrium model that suggests that the decline could be driven by noninformation- based (NIB) trading activity, because such trading reduces the ability of stock prices to reflect accounting information. Specifically, Dontoh et al. (2004) show that when NIB trading increases, the R-squares of a regression of stock price on accounting information declines. Our empirical tests confirm this prediction; i.e., the decline in the association between stock prices and accounting information as measured by R-squares is driven by an increase in NIB trading. | en |
dc.language.iso | en_US | en |
dc.relation.ispartofseries | Alex Dontoh-1 | en |
dc.subject | Noisy rational expectations equilibrium | en |
dc.subject | Non-information-based trading | en |
dc.subject | Value relevance | en |
dc.title | The Declining Value Relevance of Accounting Information and Non Information-Based Trading: An Empirical Analysis | en |
dc.type | Working Paper | en |
Appears in Collections: | Accounting Working Papers |
Files in This Item:
File | Description | Size | Format | |
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SSRN-id230826.pdf | 268.43 kB | Adobe PDF | View/Open |
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