Disclosure effects in the laboratory: Liquidity, depth, and the cost of capital

Accounting Review

Volumn 75, Issue 1, 2000, Pages 13-41

  Bloomfield, Robert J ^a   Wilks, T Jeffrey ^a  

^a NONE

Author keywords

Cost of capital; Disclosure; Experimental economics; Liquidity

Indexed keywords

EID: 0034406192     PISSN: 00014826     EISSN: None     Source Type: Journal    
DOI: 10.2308/accr.2000.75.1.13     Document Type: Article

References (35)

1. Amihud, Y., and H. Mendelson. 1986. Asset pricing and the bid ask spread. Journal of Financial Economics 17: 223-249.
2. Bartov, E., and G. Bodnar. 1996. Alternative accounting methods, information asymmetry and liquidity: Theory and evidence. The Accounting Review 71: 397-418.
3. Bloomfield, R. 1996a. The interdependence of reporting discretion and informational efficiency in laboratory markets. The Accounting Review 71 (October): 493-511.
4. _. 1996b. Quotes, prices and estimates of value in a laboratory market. Journal of Finance 51: 1791-1808.
5. _, and R. Libby. 1996. Market reactions to differentially available information. Journal of Accounting Research 34: 183-207.
6. _, and M. O'Hara. 1999. Market transparency: Who wins and who loses. Review of Financial Studies 12 (Spring): 5-35.
7. Botosan, C. A. 1997. Disclosure level and the cost of equity capital. The Accounting Review 72: 323-349.
8. Byrd, J., M. Johnson, and M. Johnson. 1995. Investor relations and the cost of capital. Working paper, University of Michigan.
9. Callahan, C., C. M. C. Lee, and T. L. Yohn. 1997. Accounting information and bid-ask spreads. Accounting Horizons 11 (4): 50-60.
10. Cason, T., and D. Friedman. 1996. Price formation in double auction markets. Journal of Economic Dynamics and Control 20 (August): 1307-1337.
11. Coller, M. 1996. Information, noise, and asset prices: An experimental study. Review of Accounting Studies 1: 35-50.
12. _, and T. Yohn. 1997. Management forecasts and information asymmetry: An examination of bid-ask spreads. Journal of Accounting Research 35 (2): 181-191.
13. Diamond, D., and R. Verrecchia. 1991. Disclosure, liquidity, and the cost of capital. Journal of Finance 46 (September): 1325-1359.
14. Forsythe, R., and R. Lundholm. 1990. Information aggregation in an experimental market. Econometrica 58: 309-348.
15. Friedman, D. 1993. How trading institutions affect financial market performance: Some laboratory evidence. Economic Inquiry 31 (July): 410-435.
16. Gode, D., and S. Sunder. 1997. What makes markets allocationally efficient? The Quarterly Journal of Economics 112 (2): 603-630.
17. Grossman, S., and M. H. Miller. 1988. Liquidity and market structure. Journal of Finance 43: 617-637.
18. Healy, P., A. Hutton, and K. Palepu. 1999. Stock performance and intermediation changes surrounding sustained increases in disclosure. Contemporary Accounting Research (forthcoming).
19. Hopkins, P. 1996. The effect of financial statement classification of hybrid financial instruments on financial analysts' stock price judgments. Journal of Accounting Research 34: 33-50.
20. Kachelmeier, S. 1996. Do cosmetic reporting variations affect market behavior? A laboratory study of the accounting emphasis on unavoidable costs. Review of Accounting Studies 1: 115-140.
21. _, and M. Shehata. 1992. Examining risk preferences under high monetary incentives: Experimental evidence from the People's Republic of China. The American Economic Review 82 (5): 1120-1141.
22. Kahneman, D., J. Knetsch, and R. Thaler. 1990. Experimental tests of the endowment effect and the Coase theorem. Journal of Political Economy 98: 1325-1348.
23. _, and A. Tversky. 1979. Prospect theory: An analysis of decision under risk. Econometrica 47: 263-291.
24. King, R. 1996. Reputation formation for reliable reporting: An experimental investigation. The Accounting Review 71 (3): 375-396.
25. Lang, M., and R. Lundholm. 1993. Cross-sectional determinants of analyst ratings of corporate disclosures. Journal of Accounting Research 31: 246-271.
26. _, and _. 1996. Corporate disclosure policy and analyst behavior. The Accounting Review 71: 467-492.
27. Lee, C. M. C., B. Mucklow, and M. J. Ready. 1993. Spreads, depth, and the impact of earnings information: An intraday analysis. The Review of Financial Studies 6: 345-374.
28. Lev, B. 1988. Toward a theory of equitable and efficient accounting policy. The Accounting Review 63 (1): 1-22.
29. Lundholm, R. 1991. What affects the efficiency of a market? Some answers from the laboratory. The Accounting Review 66: 486-515.
30. Odean, T. 1998. Are investors reluctant to realize their losses? Journal of Finance 53: 1775-1798.
31. Piotroski, J. D. 1999. The impact of newly reported segment information on market expectations and stock prices. Working paper, University of Michigan.
32. Plott, C., and S. Sunder. 1988. Rational expectations and the aggregation of diverse information in laboratory security markets. Econometrica 56: 1085-1118.
33. Smith, V., A. Williams, W. Bratton, and M. Vannoni. 1982. Competitive market institutions: Double auctions vs. sealed bid-offer auctions. The American Economic Review 72 (March): 58-77.
34. Weber, M., and C. Camerer. 1998. The disposition effect in securities trading: An experimental analysis. Journal of Economic Behavior and Organization 33: 167-184.
35. Welker, M. 1995. Disclosure policy, information asymmetry, and liquidity in equity markets. Contemporary Accounting Research (Spring): 801-827.