Discussion of Accounting quality and the transmission of monetary policy

• 成果类型: Editorial Material
• 署名作者: Gallo, Lindsey A.; Kothari, S. P.
• 署名单位: University of Michigan System; University of Michigan; U.S. Securities & Exchange Commission (SEC); Massachusetts Institute of Technology (MIT)
• 刊物名称: JOURNAL OF ACCOUNTING & ECONOMICS
• ISSN/ISSBN: 0165-4101
• DOI: 10.1016/j.jacceco.2019.101262
• 发表日期: 2019
• 关键词: earnings; FIRMS

摘要

Armstrong, Glaeser and Kepler (2019) examine whether accounting quality affects the sensitivity of a firm's stock returns to monetary policy news. The authors document that firms with lower accounting quality experience more pronounced responses to surprise changes in the target Federal funds rate, consistent with proposed balance -sheet channel of policy transmission. We first discuss how this paper fits with prior literature on the role of accounting quality and firm investment and with recent work examining information frictions and policy transmission. We then question the intuition behind the paper's symmetric prediction. In addition, we highlight potential measurement issues related to returns and accounting quality. Lastly, we consider the key takeaways of the paper and provide suggestions for areas of future research. (C) 2019 Published by Elsevier B.V.