Do the FASB's Standards Add Shareholder Value?

• 成果类型: Article
• 署名作者: Khan, Urooj; Li, Bin; Rajgopal, Shivaram; Venkatachalam, Mohan
• 署名单位: Columbia University; University of Texas System; University of Texas Dallas; Duke University
• 刊物名称: ACCOUNTING REVIEW
• ISSN/ISSBN: 0001-4826
• DOI: 10.2308/accr-51840
• 发表日期: 2018
• 页码: 209-247
• 关键词: research-and-development; Sarbanes-Oxley Act; economic consequences; Market reaction; information asymmetry; accounting regulation; positive research; earnings quality; Estimation risk; VALUE-RELEVANCE

摘要

We examine the cost-effectiveness, from the shareholders' perspective, of the accounting standards issued by the FASB during 1973-2009. We evaluate (1) the stock market reactions of firms affected by the standards surrounding events that changed the standard's probability of issuance; and (2) whether the market reactions are related, in the cross-section, to agency problems, information asymmetry, proprietary costs, contracting costs, and changes in estimation risk. The average standard is a non-event from the investors' perspective because 104 of the 138 standards examined are associated with no change in shareholder value. Nineteen (15) standards are associated with a decrease (increase) in shareholder value. Surprisingly, 25 standards are associated with an increase in estimation risk. In the cross-section, firms with higher levels of information asymmetry, lower contracting costs, and a decrease in estimation risk experience most positive returns.