Do industry-specific accounting standards matter for capital allocation decisions?

• 成果类型: Article
• 署名作者: Fiechter, Peter; Landsman, Wayne R.; Peasnell, Kenneth; Renders, Annelies
• 署名单位: University of Neuchatel; University of North Carolina; University of North Carolina Chapel Hill; University of North Carolina School of Medicine; Lancaster University; BI Norwegian Business School
• 刊物名称: JOURNAL OF ACCOUNTING & ECONOMICS
• ISSN/ISSBN: 0165-4101
• DOI: 10.1016/j.jacceco.2023.101670
• 发表日期: 2024
• 关键词: PRIVATE FIRMS; disclosure; INFORMATION; QUALITY; EFFICIENCY; liquidity; MARKETS; cost

摘要

This study examines whether the implementation of industry-specific accounting standards helps capital market participants in making decisions about providing capital to firms. We predict and find an, on average, increase in firms' capital growth in years following implementation of the relevant industry standard. The increase in capital growth arises primarily from equity issuances and is attributable to the implementation of the standards rather than industry-specific trends or economic shocks. We explore heterogeneity in industry standards and find more pronounced effects for (i) industry standards that reveal new information, provide explicit guidance, or increase accounting uniformity, and (ii) small firms, firms with greater information asymmetry, and firms with greater capital constraints before implementation of the standards. We also find evidence consistent with two channels explaining the documented increase in capital flows: reduction of information asymmetry and increase in financial statement comparability.