scholarly journals Information disclosure in a local socio-economic system with tacit knowledge and information asymmetry

2020 ◽  
Vol 164 ◽  
pp. 09021
Author(s):  
Alim Gurtuev ◽  
Zaur Ivanov ◽  
Anzor Sabanchiev
Keyword(s):  
Information Asymmetry ◽  
Adverse Selection ◽  
Information Disclosure ◽  
Probability Model ◽  
Market Equilibrium ◽  
Local Property ◽  
Bayesian Probability ◽  
Theoretic Model ◽  
Local Market ◽  
Knowledge Asymmetry

We study the effects of institutional information disclosure on the market equilibrium in a local market with knowledge asymmetry and scarce information. The purpose of our work is the analysis of long-term efficiency of a dedicated institutional mechanism of information disclosure for such a market. The paper presents the game-theoretic model of a local property rights market with an infrastructural institution disclosing non-personalized information in a system with a combination of market elements, administrative and shadow economy. For each object, there is some hidden non-transferrable information essential for assessment. Under such conditions, the influence of subjective biases on the market equilibrium can be described as a Bayesian probability model of adverse selection. In the elaborated model, the equilibrium parameters are theoretically analyzed. It is shown that information asymmetry in the modeled systems leads to an irrational allocation of investment resources. It is shown that the infrastructural institutions disclosing non-personalized information are not only unable to efficiently counteract adverse selection, but facilitate it.

scholarly journals EARNING MANAGEMENT MODELING BASED ON FINANCIAL COMMUNICATION

2018 ◽  
Vol 6 (10) ◽  
pp. 274-279
Author(s):  
Mojtaba Mortezaee
Keyword(s):  
Information Asymmetry ◽  
Information Disclosure ◽  
Financial Information ◽  
Earning Management ◽  
Web Based ◽  
Management Incentives ◽  
Financial Communication ◽  
The Relationship ◽  
Financial Communications

The present research is focused on financial communication area and aim to investigate the relationship between company’s web-based financial communications, information asymmetry and earning management. The research is aim to examine whether financial communication besides its usefulness could be act as contributory means for management in order to earning management. In other words, aim to challenges management incentives toward web-based financial information disclosure.

Does negative information in MD&A can reduce stock crash risk?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jianmai Liu
Keyword(s):  
Information Asymmetry ◽  
Information Disclosure ◽  
Stock Price ◽  
Negative Information ◽  
Bad News ◽  
Practical Significance ◽  
Crash Risk ◽  
Content Type ◽  
The Impact

Purpose As an important part of the disclosure of listed companies' annual reports, MD&A will disclose some "bad news" about the company. The purpose of this paper is to study whether such "bad news" can reduce information asymmetry and alleviate the risk of stock price crash remains to be seen. Design/methodology/approach Based on the sample of A-share listed companies from 2007 to 2016, the authors examine whether the negative information in MD&A could reduce stock price crash risk. Findings It is found that the negative information in MD&A does not reduce future crash, which indicates that the negative information in MD&A does not alleviate the information asymmetry. Further, it is also found this is due to the low readability of negative information which leads to the negative information not successfully released into the market timely. Only highly readable negative information can alleviate information asymmetry and suppress crash risk. In addition, the authors also find in the companies with more investor surveys negative tone is negatively correlated with crash risk, which means that investor surveys could help investors interpret the negative information in MD&A and alleviate stock price crash risk. Practical implications The practical significance of this article: this paper suggests that investors should carefully identify the quality of negative information in MD&A and pay attention to other quality characteristics besides credibility. This paper suggests that the regulator should pay attention not only to whether to disclose and the amount of disclosure but also to the quality of information disclosure, such as readability, so as to restrict management's strategic behavior in information disclosure. Originality/value First, different from previous studies on the impact of information disclosure on crash risk, this paper directly explores the impact of information in MD&A on stock price crash risk from the perspective of negative information disclosure that management most want to hide. It supplements the literature on the impact of information disclosure on stock price crash risk. Second, this paper studies the interaction between information tone and readability and its impact on the risk of stock price crash. Some studies believe that the credibility of negative news is higher and investors' reaction may be stronger. However, this paper finds that the disclosure of negative information may not be absorbed by the market because of the low readability. Third, this paper finds that investor surveys can help information users to interpret negative information and alleviate the risk of stock price crash, which shows that information disclosure of different channels will complement each other and improve information efficiency. Therefore, it advocates different information disclosure channels which has important practical significance for improving market pricing efficiency and reducing investment decision-making risk.

Production of Landslide Susceptibility Map using Bayesian Probability Model

2015 ◽  
Vol 4 (2) ◽  
pp. 16-33 ◽  
Author(s):  
Halil Akıncı ◽  
Ayşe Yavuz Özalp ◽  
Mehmet Özalp ◽  
Sebahat Temuçin Kılıçer ◽  
Cem Kılıçoğlu ◽  
...  
Keyword(s):  
Land Use ◽  
Land Use Planning ◽  
Landslide Susceptibility ◽  
Probability Model ◽  
Bayesian Probability ◽  
Slope Aspect ◽  
Susceptibility Map ◽  
Model Parameters ◽  
Operating Characteristics ◽  
Landslide Susceptibility Map

Artvin is one of the provinces in Turkey where landslides occur most frequently. There have been numerous landslides characterized as natural disaster recorded across the province. The areas sensitive to landslides across the province should be identified in order to ensure people's safety, to take the necessary measures for reducing any devastating effects of landslides and to make the right decisions in respect to land use planning. In this study, the landslide susceptibility map of the Central district of Artvin was produced by using Bayesian probability model. Parameters including lithology, altitude, slope, aspect, plan and profile curvatures, soil depth, topographic wetness index, land cover, and proximity to the road and stream were used in landslide susceptibility analysis. The landslide susceptibility map produced in this study was validated using the receiver operating characteristics (ROC) based on area under curve (AUC) analysis. In addition, control landslide locations were used to validate the results of the landslide susceptibility map and the validation analysis resulted in 94.30% accuracy, a reliable outcome for this map that can be useful for general land use planning in Artvin.

A Game Analysis between GM Food Production Enterprises and Regulators in Information Asymmetry

2011 ◽  
Vol 403-408 ◽  
pp. 1960-1963
Author(s):  
Lin Ma ◽  
Hai Ying Gu
Keyword(s):  
Information Asymmetry ◽  
Food Production ◽  
Market Equilibrium ◽  
Dynamic Game ◽  
Game Analysis ◽  
Static Game ◽  
Gm Food

Information asymmetry exists in a game relation between GM food Production enterprises and Regulators. Thus the market equilibrium depends on the strategy of GM food Production enterprises and Regulators.This paper argues that the probability of GM food Production enterprises paying attention to the propaganda and labeling GM food Consciously increase along with the probability of Regulation whether in Dynamic Game or Static Game. For the sake of Consumers,the Regulation of GM food is Essential.

scholarly journals Depreciation Choice and Future Operating Performance

2019 ◽  
Vol 9 (1) ◽  
pp. 89
Author(s):  
Marcus L. Caylor ◽  
Scott Whisenant
Keyword(s):  
Information Asymmetry ◽  
Adverse Selection ◽  
Operating Performance ◽  
Signaling Theory ◽  
Cash Flows ◽  
Future Prospects ◽  
Future Earnings ◽  
Accounting Choices ◽  
Straight Line ◽  
Accelerated Depreciation

In this study we test the argument that information asymmetry and the problems of adverse selection provide incentives for managers to use accounting choices to signal relatively higher future prospects. Specifically, we contend that firms use accelerated depreciation to credibly signal higher future earnings and cash flows, consistent with signaling theory. Compared to straight-line depreciation, accelerated depreciation reduces earnings in the earlier years of asset lives and produces more variability in earnings. Despite these drawbacks, hundreds of firms voluntarily use accelerated depreciation for at least some of their depreciable assets. Our results indicate that the use of accelerated depreciation foreshadows higher future earnings and cash flows for horizons of one, two, and three years ahead.

The industrialization of translation

2012 ◽  
Vol 1 ◽  
pp. 143-168 ◽  
Author(s):  
Keiran J. Dunne
Keyword(s):  
Information Asymmetry ◽  
Adverse Selection ◽  
Large Scale ◽  
Quality Uncertainty ◽  
Related Services ◽  
Service Business ◽  
Price Pressure ◽  
Development Of Expertise ◽  
Uncertainty Information

Much has written by scholars on translation as product and as process, but relatively little attention has been paid to translation as a commercial service, business or industry. This article proposes a modest step in this direction by using microeconomics as a window through which to examine the industrialization of translation, focusing on causes, consequences and challenges. It begins by analyzing the outsourcing of translation and translation-related services. It then considers consequences of large-scale outsourcing, including quality uncertainty, information asymmetry, adverse selection, price pressure and perceived commoditization. Finally, the article explores challenges posed by these developments, including signaling and screening, the productivity imperative and the development of expertise. The article concludes with an overview of potential areas of research to be explored in this track in future issues.

scholarly journals A Bayesian Probability Model Can Simulate the Knowledge of Soybean Rust Researchers to Optimize the Application of Fungicides

2019 ◽  
Vol 10 (4) ◽  
pp. 37-51
Author(s):  
Gregory Vinícius Conor Figueiredo ◽  
Lucas Henrique Fantin ◽  
Marcelo Giovanetti Canteri ◽  
José Carlos Ferreira da Rocha ◽  
David de Souza Jaccoud Filho
Keyword(s):  
Literature Review ◽  
Bayesian Network ◽  
Knowledge Engineering ◽  
Probability Model ◽  
Soybean Rust ◽  
Bayesian Probability ◽  
Yield Reduction ◽  
Test Cases ◽  
Validation Process ◽  
Asian Soybean Rust

Asian rust is the main soybean disease in Brazil, causing up to 80% of yield reduction. The use of fungicides is the main form of control; however, due to farmer's concern with outbreaks many unnecessary applications are performed. The present study aims to verify the usefulness of a probability model to estimate the timing and the number of fungicides sprays required to control Asian soybean rust, using Bayesian networks and knowledge engineering. The model was developed through interviews with rust researchers and a literature review. The Bayesian network was constructed with the GeNIe 2.0 software. The validation process was performed by 42 farmers and 10 rust researchers, using 28 test cases. Among the 28 tested cases, generated by the system, the agreement with the model was 47.5% for the farmers and 89.3% for the rust researchers. In general, the farmers overestimate the number. The results showed that the Bayesian network has accurately represented the knowledge of the expert, and also could help the farmers to avoid the unnecessary applications.

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