scholarly journals An Investigation Of The Comparative Impact Of Degree Of Implementation Of IFRS Upon The Public And Private Information Quality Of Asia Pacific Country Firms

2010 ◽  
Vol 9 (3) ◽  
Author(s):  
Arsen Djatej ◽  
Grace Gao ◽  
Robert H.S. Sarikas ◽  
David L. Senteney
Keyword(s):  
Private Information ◽  
Information Quality ◽  
Public Information ◽  
Earnings Forecasts ◽  
Asia Pacific ◽  
Public And Private ◽  
Institutional Infrastructure ◽  
Asia Pacific Country ◽  
Equity Securities

This research investigates the comparative quality of public and private information environments between firms domiciled in 15 Asia Pacific countries of which seven are characterized as market supportive institutional infrastructure.  Our empirical analyses examine the comparative quality of public and private information components of equity securities analysts’ earnings forecasts for Asia Pacific firms, while controlling for firms cross-listing on U.S. equity securities exchanges and  country of domicile degree of implementation of IFRS.  Our results indicate that the quality of private information is higher for non-market supportive infrastructure countries, as compared to market-supportive infrastructure countries of domicile, and the quality of public information is higher for market-supportive infrastructure as compared to non-market-supportive infrastructure countries of domicile.  Furthermore, and particularly noteworthy, is that our results indicate that country of domicile degree of implementation of IFRS increases the quality of public information and decreases the quality of private information for both market-supportive infrastructure and non-market-supportive infrastructure countries of domicile, and also that the decrease in the quality of private and increase in the quality of public information associated with degree of implementation of IFRS are significantly more pronounced for market-supportive infrastructure countries relative to non-market-Supportive infrastructure countries of domicile.  We believe that our results suggest that IFRS is more beneficial for countries having market supportive institutional infrastructure in place as compared with those who do not.

Voluntary IFRS Adoption, Analyst Coverage, and Information Quality: International Evidence

2012 ◽  
Vol 11 (1) ◽  
pp. 45-76 ◽  
Author(s):  
Jeong-Bon Kim ◽  
Haina Shi
Keyword(s):  
Financial Reporting ◽  
Private Information ◽  
Information Quality ◽  
Public Information ◽  
Public And Private ◽  
Analyst Coverage ◽  
Financial Reporting Standards ◽  
Common Information ◽  
Ifrs Adoption ◽  
Information Set

ABSTRACT This study investigates whether and how a firm's voluntary adoption of International Financial Reporting Standards (IFRS) affects financial analysts' decisions to follow the firm, and improves the information environment, as reflected in the precision of the analysts' information set. First, this study finds that firms with voluntary IFRS adoptions attract more analysts than non-adopter firms. Second, it finds that the added disclosure via IFRS adoption contributes to the better precision of the analyst information set. Third, this study finds that the improved precision of total analyst information is attributed to not only an increase in the precision of public information common to all analysts, but also an increase in the precision of private information that is idiosyncratic to a particular analyst. This finding suggests a complementary relation with respect to the effect of IFRS adoption on the quality of public and private information. Finally, further analysis reveals that analyst coverage also improves the precision of information. Specifically, this study provides evidence suggesting that voluntary IFRS adoption is associated with more precise public (common) information, while analyst coverage is associated with more precise private (idiosyncratic) information.

Corporate Disclosure Quality and Properties of Analysts' Information Environment

2003 ◽  
Vol 18 (3) ◽  
pp. 355-378 ◽  
Author(s):  
Donal Byard ◽  
Kenneth W. Shaw
Keyword(s):  
Private Information ◽  
Public Information ◽  
Earnings Forecasts ◽  
Corporate Disclosure ◽  
Empirical Measures ◽  
Information Precision ◽  
Public Disclosures ◽  
Privileged Communications ◽  
Annual Earnings

This study examines how the quality of corporate disclosures impacts the precision of information that financial analysts incorporate into their forecasts of annual earnings. Our empirical measures distinguish between individual analysts' common and idiosyncratic (uniquely private) information precision, and between the quality of firms' public disclosures and the quality of their private communications with analysts. We find that higher quality disclosures increase the precision of analysts' commonand idiosyncratic information. Further, we find that the increased precision of analysts' idiosyncratic information is primarily due to higher quality annual and quarterly accounting-related disclosures, publicly available to all investors. These results suggest that higher-quality public information better enables analysts to generate idiosyncratic insights. We find no evidence to suggest that the quality of analysts' private communications with management impacts analysts' information precision after controlling for the quality of publicly available accounting information. In sum, the results suggest that when forming their annual earnings forecasts, analysts rely more heavily on publicly available financial data rather than privileged communications with management.

Why Do IPO Offer Prices Only Partially Adjust?

2014 ◽  
Vol 04 (03) ◽  
pp. 1450009 ◽  
Author(s):  
Özgür Ş. İnce
Keyword(s):  
Initial Public Offering ◽  
Private Information ◽  
Information Acquisition ◽  
Structural Model ◽  
Public Information ◽  
Public And Private ◽  
New Information ◽  
Pricing Process ◽  
Ipo Pricing ◽  
Public Offering

This study develops a structural model of the initial public offering (IPO) pricing process that enables the estimation of adjustment rates for public and private pricing information gathered during bookbuilding. The estimated upward adjustment rate of public information is only 21%, significantly less than the 28% rate of private information. Adjustment rates decline towards the IPO date, especially for upward adjustments. The findings contradict information acquisition theories that predict a complete adjustment to public information and highlight the inefficiency of the IPO bookbuilding mechanism in handling new information even when information is publicly available and especially when it is favorable.

scholarly journals Efficiency of the Experimental Prediction Market: Public Information, Belief Evolution, and Personality Traits

2021 ◽  
pp. 39-59
Author(s):  
Bin-Tzong Chie ◽  
Chih-Hwa Yang
Keyword(s):  
Personality Traits ◽  
Private Information ◽  
Positive Impact ◽  
Market Price ◽  
Public Information ◽  
Jel Classification ◽  
Public And Private ◽  
Market Prices ◽  
Aggregate Information ◽  
Experimental Prediction

Abstract This paper examines the ability of markets to aggregate information so that the price generated from the market contains the best estimate of all the available information. The paper investigates how individuals “update” their initial beliefs from their public and private information in light of market prices. In particular, the paper looks at individuals' weighting of public information versus private information. Also, the volume of information in the market via an increased number of traders with private information has a positive impact on the quality of the market price. Lastly, the personality traits of the traders seem to provide some positive impact if the traders are diverse in terms of the proportion of “efficient and organized” traders in the market. JEL classification numbers: C91, C92, D82 Keywords: Experimental economics, Prediction markets, Belief, Market efficiency, Personality traits.

Public and Private Partner Selection in Battle of Sexes

2015 ◽  
Vol 6 (2) ◽  
pp. 47-64
Author(s):  
Pedro Mariano ◽  
Davide Nunes ◽  
Luís Correia
Keyword(s):  
Private Information ◽  
Public Information ◽  
Partner Selection ◽  
Population Diversity ◽  
Minor Role ◽  
Public And Private ◽  
Is Strategy ◽  
Opinion Model ◽  
A Minor

In this paper the authors investigate what factors can promote population diversity. They compare different partner selection models and strategy mobility on the Battle of Sexes game. This is a game with a coordination dilemma where players must decide which event to attend given that each one has its preferred event but they prefer going together. They investigate two types of partner selection: one based in private information and another based on public information, which is based on an opinion model. The authors analyze two variants of the opinion model. Experimental analysis shows that partner selection plays a minor role of favoring population diversity. One of the most important factors is strategy mobility either implicitly through mutation or explicitly when an offspring is placed in a different location.

Conformity Voting and the Value of Public Information

2018 ◽  
Vol 7 (04) ◽  
pp. 913-920
Author(s):  
Haritz Garro
Keyword(s):  
Private Information ◽  
Public Information ◽  
Candidate Model ◽  
Quality Of Information ◽  
Face To Face ◽  
Public Signals ◽  
Private And Public

I study how the quality of information affects politician selection in a two-candidate model where voters want to vote for the best candidate but also for the winner. Voters receive private and public signals about candidates’ relative valence. Public information has a stronger effect on equilibrium outcomes because voters use it to infer other voters’ beliefs. Contrary to what might be expected, more precise public information does not always benefit the better candidate’s electoral prospects: when voters’ private information is precise enough, improving public information hurts the better candidate’s electoral prospects. The model provides a rationale for the prevalence of large swings in voter sentiment in close elections, and for front-runner candidates’ tendency to avoid face-to-face television debates with the underdog.

IPO UNDERPRICING AND INFORMATION QUALITY OF PROSPECTUSES

2020 ◽  
Vol 65 (06) ◽  
pp. 1559-1577
Author(s):  
KUO ZHOU ◽  
BAICHENG ZHOU ◽  
HUAXIAO LIU
Keyword(s):  
Capital Market ◽  
Information Disclosure ◽  
Information Quality ◽  
Public Information ◽  
Relevant Information ◽  
Ipo Underpricing ◽  
Quality Of Information ◽  
Sustainable Operation ◽  
The Relationship

Effective information disclosure is the cornerstone of sustainable operation of the capital market. In the IPO market, whether public information in the prospectus can be fully captured by investors largely depends on the quality of valuation-relevant information. Based on Chinese prospectuses, we create five unique indicators to measure the information quality and examine the relationship between information quality and IPO underpricing. We find that high quality of information disclosure results in less underpricing because they relieve serious information asymmetry between issuing companies and investors. We provide a new method to supervise and improve the quality of non-financial information disclosure.

scholarly journals Beyond Banks’ Capitalization: What Affects the Credit Lines?

2017 ◽  
Vol 8 (4) ◽  
pp. 71
Author(s):  
Carmen Gallucci ◽  
Vincenzo Formisano ◽  
Michele Modina ◽  
Rosalia Santulli
Keyword(s):  
Panel Data ◽  
Private Information ◽  
Regression Models ◽  
Direct Relationship ◽  
Public Information ◽  
Private Firms ◽  
Public And Private ◽  
Credit Lines ◽  
The Relationship ◽  
Credit Granting

The present paper aims at investigating what affects the credit granting beyond banks’capitalization. It focuses on public and private firms’ information available for the banks. We apply moderating regression models on panel data. Our sample is of 123 co-operative credit banks and more than 11,000 firms operating in Italy between 2012 and 2014, for 18,143 observations. Our main findings suggest that firms’ profitability (public information) positively moderates the direct relationship between banks’ capitalization and credit grants; differently, multiple banking, overdue payment and credit limit violation days (private information) negatively moderate the above-cited relationship. Finally, the conjoint moderating effect of public and private information proves to be negative, thus also firms with a good profitability are penalized in credit grant whether they do not take care the relationship with banks.

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