search query: @indexterm financial management / total: 951
reference: 9 / 951
| Author: | Hutton, A. P. Marcus, A. J. Tehranian, H. |
| Title: | Opaque financial reports, R2, and crash risk |
| Journal: | Journal of Financial Economics
2009 : OCT, VOL 94:1, p. 67-86 |
| Index terms: | earnings financial management information |
| Freeterms: | transparency |
| Language: | eng |
| Abstract: | The purpose of this article is to examine the relationship between financial statement transparency and stock return distribution. The authors use earnings management as a measure of opacity and study the sample firms' weekly and annual stock return data from 1991-2005. The findings indicate that opacity relates to high R2 values, which means less open firm-specific information. Stock price crashes seem to be more common in firms with opaque information policy. This phenomenon appears to have weakened, however, after the introduction of the Sarbanes-Oxley Act, which indicates either decreased earnings management or hiding less information due to the change in regulatory environment. |
SCIMA