Discussion of When does the peer information environment matter?

• 成果类型: Editorial Material
• 署名作者: Matsumoto, Dawn A.; Shaikh, Sarah
• 署名单位: University of Washington; University of Washington Seattle
• 刊物名称: JOURNAL OF ACCOUNTING & ECONOMICS
• ISSN/ISSBN: 0165-4101
• DOI: 10.1016/j.jacceco.2017.07.001
• 发表日期: 2017
• 关键词: disclosure; earnings; CONSEQUENCES; forecasts; transfers

摘要

Shroff et al. (2017) examine whether a richer peer information environment reduces the cost of capital for firms with limited firm-specific information and whether this effect decreases as firm-specific information becomes more prevalent. Although much of the evidence supporting their hypotheses is based on a small highly idiosyncratic sample of firms issuing initial public debt, the authors provide corroborating evidence using samples of IPO and SEO firms. However, two research design choices make it difficult to discern the nature of the peer information that substitutes for firm information. Hence, the implications of the findings for disclosure regulation are limited. (C) 2017 Elsevier B.V. All rights reserved.