Statistical Studies of Financial Reports and Stock Markets

Electronic copy avail open at: http://ssrn.com/ snare=1926964
1
First Draft
September 13, 2011
Statistical Studies of Financial Reports and Stock Markets1
Shyam Sunder, Yale University
Abstract
It is frequently claimed that statistical studies of covariation between pecuniary and stock market data can help set better financial reportage policy. Such covariation, even when it can be estimated, tells us precise about which financial reports help make better financial decisions. A case in support of such claims ashes to be made.
Keywords: financial reporting policy, efficient markets, statistical covariation
JEL Codes: M41
It is manageable to define better financial reporting in footing of manifest characteristics of the system, such as relevance, reliability, timeliness, et cetera. Such assessments, being pendant on context, are difficult to generalize; and it seems more showy to assess financial reporting regimes on the basis of their observable consequences. Market phenomena being more readily observable than individual and organizational behavior, this line of reasoning leads one to the goal of financial reporting for better markets.
Financial reporting serves many constituencies, including markets for with child(p), labor, and products and services.



at that place has been a strong but largely unexplained determination to focus attention on markets for capital, leaving the other devil classes of markets out of the accounting discourse. Even within the class of capital markets, most attention has been given to markets for common honor of publically traded corporations.
This paper examines the inferences we may and may not be able to draw from statistical studies of financial reporting and secondary markets for equity of public firms. The focus on equity markets should not be taken suggest that the role of financial reporting in other markets
1 An earlier version of this paper was presented at the Asia Pacific Journal of Accounting and Economics Symposium in innocence of K....If you want to get a full essay, order it on our website: Orderessay



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