search query: @indexterm QUALITY CONTROL / total: 544
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| Author: | Kirschenheiter, M. |
| Title: | Information quality and correlated signals |
| Journal: | Journal of Accounting Research
1997 : SPRING, VOL. 35:1, p. 43-59 |
| Index terms: | ACCOUNTING INFORMATION SYSTEMS QUALITY CONTROL RELIABILITY MODELS MATHEMATICAL ANALYSIS |
| Language: | eng |
| Abstract: | Between relevant and reliable accounting information there is a trade-off in the context of the argument about "fair value" accounting. Current models ignore the issue of reliability versus relevance either because a single signal is assumed or because the distinction is not made explicit. This paper examines optimal disclosure policy when two signals are available to be disclosed. Reliability is modeled as the precision of these signals while relevance is modeled as the covariance between the signal and the asset's "true" value. The model is build on Verrecchia (1983; 1990). |
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