Financial statement comparability and expected crash risk

• 成果类型: Article
• 署名作者: Kim, Jeong-Bon; Li, Leye; Lu, Louise Yi; Yu, Yangxin
• 署名单位: University of Waterloo; University of New South Wales Sydney; Australian National University; City University of Hong Kong
• 刊物名称: JOURNAL OF ACCOUNTING & ECONOMICS
• ISSN/ISSBN: 0165-4101
• DOI: 10.1016/j.jacceco.2015.12.003
• 发表日期: 2016
• 关键词: CONDITIONAL SKEWNESS; earnings; INFORMATION; MARKET; volatility; options; COMPETITION; valuation; forecasts; QUALITY

摘要

This study examines the impact of financial statement comparability on ex ante crash risk. Using the comparability measures of De Franco et al. (2011), we find that expected crash risk decreases with financial statement comparability, and this negative relation is more pronounced in an environment where managers are more prone to withhold bad news. We also provide evidence that comparability can mitigate the asymmetric market reaction to bad versus good news disclosures. Our results suggest that financial statement comparability disinclines managers from bad news hoarding, which reduces investors' perceptions of a firm's future crash risk. (C) 2016 Elsevier B.V. All rights reserved.