Investor Protection, Firm Fundamentals Information and Stock Price Synchronicity

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aut.relation.conferenceCentral University of Economics and Finance, Beijing, 2014, Accounting and Finance Association of Australia and New Zealand Annual Conference 2014, and the American Accounting Association Annual Meeting 2014.en_NZ
dark.contributor.authorRahman, Aen_NZ
dc.contributor.authorAhmad, A
dc.contributor.authorCourtenay, S
dc.date.accessioned2017-10-01T22:40:59Z
dc.date.available2017-10-01T22:40:59Z
dc.date.copyright2014-01-01en_NZ
dc.date.issued2014-01-01en_NZ
dc.description.abstractThis paper reports a cross-country study on the use of firm fundamentals information (FFI) in capital market pricing decisions with institutional arrangements for investor protection (IP) as a moderating variable. We use accounting accruals information (AAI) as a proxy for FFI and stock price synchronicity (SPS) as a measure of use of FFI and other information in capital market pricing decisions. Morck, Yeung and Yu (MYY) (2000) posit that when the information environment in a capital market is more developed, investors use FFI of firms in making investment decisions and this lowers SPS. Conversely, when the information environment in a capital market is less developed, investors rely more on market information in making investment decisions and this increases SPS. Using data from 1995 to 2010 for the 40 countries of MYY, we find that AAI is associated with SPS only when IP levels are high, which suggests that investors rely on FFI in making investment decisions when IP is stronger.
dc.identifier.citationAccounting and Finance Association of Australia and New Zealand (AFAANZ) Annual Conference 2014, 6-8 July, Auckland, New Zealand
dc.identifier.urihttps://hdl.handle.net/10292/10842
dc.publisherAccounting and Finance Association of Australia and New Zealand (AFAANZ)
dc.relation.urihttp://www.afaanz.org/conferences
dc.rightsNOTICE: this is the author’s version of a work that was accepted for publication. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in (see Citation). The original publication is available at (see Publisher's Version).
dc.rights.accessrightsOpenAccessen_NZ
dc.titleInvestor Protection, Firm Fundamentals Information and Stock Price Synchronicityen_NZ
dc.typeConference Contribution
pubs.elements-id214396
pubs.organisational-data/AUT
pubs.organisational-data/AUT/Faculty of Business, Economics and Law
pubs.organisational-data/AUT/Faculty of Business, Economics and Law/Accounting
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pubs.organisational-data/AUT/PBRF Reviewers/PBRF Reviewers - Business Economics and Law
pubs.organisational-data/AUT/PBRF Reviewers/PBRF Reviewers - Business Economics and Law/Accounting Department - PBRF Reviewers
pubs.organisational-data/AUT/PBRF/PBRF Business Economics and Law
pubs.organisational-data/AUT/PBRF/PBRF Business Economics and Law/Accounting Department PBRF 2018
pubs.organisational-data/AUT/PBRF/PBRF Business Economics and Law/Faculty Review Team PBRF 2018
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