The relative value of non-United States annual reports and accounts : a price and trading volume analysis /
Previous studies in the United States demonstrate that interim and annual earnings announcements have information content for investors, and creditors. In contrast, however, there has been no study relating to the information content of United Kingdom Annual Report and Accounts (ARA), Annual General...
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| Format: | Thesis Book |
| Language: | English |
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[Place of publication not identified] :
[publisher not identified] ;
1999.
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| Subjects: | |
| Online Access: | http://proxy.library.tamu.edu/login?url=http://proquest.umi.com/pqdweb?did=730829261&sid=1&Fmt=2&clientId=2945&RQT=309&VName=PQD |
| Summary: | Previous studies in the United States demonstrate that interim and annual earnings announcements have information content for investors, and creditors. In contrast, however, there has been no study relating to the information content of United Kingdom Annual Report and Accounts (ARA), Annual General Meetings (AGM), and preliminary earnings announcements (PEA) in the United States. Thus, the informativeness of the ARA and AGM from a price-based perspective remains an open empirical question; from a trading-based perspective it is an unaddressed issue. The primary purpose of this study, therefore, is to provide evidence on the value-relevance of the ARA, AGM, and PEA, thus tilling the aforementioned gap on this subject. A market model approach is employed to analyze the informativeness of United Kingdom disclosures on security return and trading volume behavior in the United States market around the release dates of the ARA, AGM, and PEA. Several hypotheses concerning the effects on security price and trading volume measures of ARA, AGM, and PEA release periods are tested. The first hypothesis (H1) constitutes a test of price invariance. This concerns the resolution of the issue of the information imparted by United Kingdom disclosures and their effect on security prices in the United States equity market. By conveying information about a firm's economic activities, ARA, AGM, and PEA disclosures resolve some uncertainty about future cash flows of the firm. The second hypothesis (H2), the trading volume hypothesis, concerns trading activity at ARA, AGM, and PEA disclosure dates. It is hypothesized that ARA, AGM, and PEA releases contain sensitive information that may engender abnormal trading volume. The existence of economically interpretable significant price and trading volume responses underscore the importance of ARA. AGM, and PEA disclosures to possess economic value. The results have direct implications on the issue of harmonization of accounting principles. That United States investors find the disclosures informative suggests lack of interpretational difficulties with United Kingdom accounting systems and buttress the exclusion of United Kingdom firms from the harmonization debate. |
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| Item Description: | Vita. "Major Subject: Accounting". |
| Physical Description: | x, 58 leaves : illustrations ; 28 cm. Issued also on microfiche from University Microfilm Inc. |
| Bibliography: | Includes bibliographical references (leaves 54-57). |