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FINANCIAL ACCOUNTING REPORTS: A MARKET MODEL OF DISCLOSURE: A COMMENT
Author(s) -
Walker M.
Publication year - 1983
Publication title -
journal of business finance and accounting
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.282
H-Index - 77
eISSN - 1468-5957
pISSN - 0306-686X
DOI - 10.1111/j.1468-5957.1983.tb00447.x
Subject(s) - presumption , accounting , economics , work (physics) , accounting information system , business , actuarial science , financial economics , law , political science , mechanical engineering , engineering
In a recent paper Bird and Locke concluded “that a freely operating market for accounting information, unencumbered with disclosure requirements, can work efficiently”. The purpose of this Comment is to explain why this conclusion is unjustified. In particular it argues that our present understanding of the socalled ‘Market’ for information is so limited that no presumption, either for or against the efficiency of this market, can be given unequivocal theoretical support.