Open AccessThe Impact Of FASB Statement No. 34s Disclosures On Stock Prices
Author(s) -
Marshall K. Pitman,
Russell F. Briner,
John E. McEnroe
Publication year - 2011
Publication title -
journal of applied business research
Language(s) - English
Resource type - Journals
eISSN - 2157-8834
pISSN - 0892-7626
DOI - 10.19030/jabr.v3i1.6541
Subject(s) - accounting , financial statement , econometrics , statement (logic) , autocorrelation , stock (firearms) , economics , residual , business , capital market , stock price , statistics , audit , finance , mathematics , mechanical engineering , paleontology , series (stratigraphy) , political science , law , biology , engineering , algorithm
This study provides empirical evidence that the disclosures required by FASB Statement No. 34 has an impact on common stock prices in the initial year of release, 1980, but not in subsequent year. Weekly data for 123 NYSE sample companies were used to estimate the regression coefficients via the GMM using a GLS with a lag of 3 due to the presence of autocorrelation. Statistical analysis of the average residual indicated that it was significantly different from zero. The evidence of this study supports the hypothesis that FASB 34 affected the capital market equilibrium via users reactions to the required disclosures.