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The Effect of Accounting Standards Change on Management Disclosures and Investor Information Asymmetry

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DOI: 10.38007/Proceedings.0001281

Author(s)

Xiaodan Zhang

Corresponding Author

Xiaodan Zhang

Abstract

Accounting standards change not only affects company financial management behavior, but also the investor trading activities. This study examines the effect of accounting standards change on both management disclosures and investor information asymmetry based on accounting economic consequence theory. We find that accounting standards change will significantly improve investor information asymmetry and management disclosure in the short term. The short-term effect is also moderated by investor sentiment. In the long term, accounting standards change only affects management disclosure, no effect on investor information asymmetry. We conclude that accounting standards change is an important component of the capital market, but the time costs in the short term are also worth paying attention to.

Keywords

Accounting Standards Change; Management Disclosures; Investor Information Asymmetry