The Real Effects of Modern Information Technologies

Goldstein, Itay; Yang, Shu; Zuo, Luo

doi:10.2139/ssrn.3649893

Cited by 5 publications

(20 citation statements)

References 47 publications

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“…Although managers have informational advantages over outsiders, managers of growth firms may generate less information internally, and additionally, the market has the advantage of estimating the value of growth options, which involves comparing different firms and analysing the trends of market development (Gao and Liang, 2013; Bai et al ., 2016). Based on Goldstein et al .’s (2020) measure of growth and value firms, we find results consistent with the expectation that the negative relation between comparability and investment‐to‐price sensitivity is more salient for growth firms than for value firms.…”

Section: Introductionsupporting

confidence: 85%

“…Thus, the impact of reduced learning is expected to be greater for growth firms. In line with this argument, Goldstein et al (2020) find that the negative effect of EDGAR-system implementation on managerial learning is stronger for growth firms. We thus propose the following first cross-sectional prediction:…”

Section: Related Literature and Hypothesessupporting

confidence: 66%

“…Consistent with this crowding-out argument, Jayaraman and Wu (2019) document a reduction in investment-q sensitivity after companies mandatorily adopted the disclosure for segment information in the United States. Goldstein et al (2020) and Bird et al (2021) find a decrease in investment-q sensitivity following EDGAR implementation. Chen and Lu (2019) document a reduction in information production by bond analysts after public disclosure increases, i.e., the implementation of GRACE in the corporate bond market.…”

Section: Related Literature and Hypothesesmentioning

confidence: 96%

“…Our inferences are consolidated by a few additional tests. First, we partition our sample into growth and value firms and expect the negative relation between comparability and investment‐ q sensitivity to be more evident in growth firms, as such firms rely more on market feedback to make investment decisions (Goldstein et al ., 2020), resulting in higher marginal costs of reduced managerial learning. Although managers have informational advantages over outsiders, managers of growth firms may generate less information internally, and additionally, the market has the advantage of estimating the value of growth options, which involves comparing different firms and analysing the trends of market development (Gao and Liang, 2013; Bai et al ., 2016).…”

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

The unintended consequence of financial statement comparability: evidence from managerial learning practices

Shen

Xie

2021

Accounting & Finance

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Comparable financial disclosure has well-known benefits but also unintended consequences. This study identifies one unintended consequence of managerial learning. For a large sample of Chinese companies, we find that investment-toprice sensitivity declines with financial statement comparability, indicating that comparability discourages managers from learning from prices. Consistent with the learning explanation, this negative relation is stronger for growth firms and for firms operating in more concentrated industries, where managers rely more on market prices for their investment decisions. We further find a decrease in firm value for these two groups of firms. Overall, we document a negative real effect of comparability.

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Section: Introductionsupporting

confidence: 85%

Section: Related Literature and Hypothesessupporting

confidence: 66%

Section: Related Literature and Hypothesesmentioning

confidence: 96%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

The unintended consequence of financial statement comparability: evidence from managerial learning practices

Shen

Xie

2021

Accounting & Finance

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“…Evidence on market timing and catering is also widely documented in accounting settings (see reviews in Libby and Emett 2014; Lee and So 2015;Blankespoor et al 2020). More recent accounting research also provides evidence that supports the managerial learning hypothesis (Zuo 2016;Wu 2019, 2020;Chen, Ng et al 2021;Goldstein et al 2021). 76.…”

Section: Regulators and Intermediariesmentioning

confidence: 82%

Behavioral Economics of Accounting: A Review of Archival Research on Individual Decision Makers*

Hanlon

Yeung

Zuo

2021

Contemporary Accting Res

Self Cite

112

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This paper develops a unified framework to synthesize the growing stream of positive research on the role of individual decision makers in shaping observed accounting phenomena. This line of research recognizes two central ideas in behavioral economics. First, individual behavior depends not only on economic incentives and accessible information but also on individual preferences, abilities, experiences, and other characteristics. Second, the constraints that structure human interactions encompass both formal institutions (e.g., rules, laws, constitutions) and informal institutions (e.g., norms, conventions, rituals). Our review covers a broad set of individuals who are of interest in accounting research: managers, directors, audit partners, analysts, standard setters, politicians, judges, journalists, loan officers, financial advisors, and investors. We aim to understand the systematic effects of individual characteristics on a wide spectrum of accounting phenomena, including financial reporting, disclosure, tax planning, auditing, and corporate social responsibility. We highlight the importance of personal characteristics not only for an individual's own behavior but also for others' perceptions. Our review mainly focuses on archival research in accounting and provides some thoughts about opportunities for archival empiricists going forward. We also, when feasible, highlight opportunities for future field, survey, and experimental research. A central takeaway from our review is that individual‐level factors significantly improve our ability to explain and predict accounting phenomena beyond firm‐, industry‐, and market‐level factors.

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Oil price uncertainty and stock price informativeness: Evidence from investment-price sensitivity in China

Zhu

Jin

Huang

et al. 2022

International Review of Financial Analysis

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The Real Effects of Modern Information Technologies

Cited by 5 publications

References 47 publications

The unintended consequence of financial statement comparability: evidence from managerial learning practices

The unintended consequence of financial statement comparability: evidence from managerial learning practices

Behavioral Economics of Accounting: A Review of Archival Research on Individual Decision Makers*

Oil price uncertainty and stock price informativeness: Evidence from investment-price sensitivity in China

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