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- Title
Information relevance, reliability and disclosure.
- Authors
Zhang, Xiao-Jun
- Abstract
This paper examines the relation between information's properties, such as reliability and relevance, and public disclosure policy. It shows that the optimal accounting system often involves a carefully balanced combination of mandatory and voluntary disclosure, with mandatory reporting focused on more reliable information. The emphasis on reliability causes the welfare-maximizing mandatory report to consistently lag behind the financial market in incorporating value-relevant information.
- Subjects
DISCLOSURE; RELIABILITY (Personality trait); CORPORATION reports; STOCK prices; FINANCIAL statements; INVESTORS; ACCOUNTING
- Publication
Review of Accounting Studies, 2012, Vol 17, Issue 1, p189
- ISSN
1380-6653
- Publication type
Article
- DOI
10.1007/s11142-011-9170-7