Open AccessExamining The Market Reactions To Regulatory Accounting Events
Author(s) -
Amin Haddad,
Ike Mathur,
Nanda Rangan,
Suresh K. Tadisina
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.v9i3.6033
Subject(s) - anticipation (artificial intelligence) , accounting , process (computing) , estimation , econometrics , event (particle physics) , event study , economics , business , computer science , paleontology , context (archaeology) , physics , management , quantum mechanics , artificial intelligence , biology , operating system
Evaluation of market reaction to regulatory accounting events such as the accounting standards policy setting process has commonly utilized event study methodology. However, this methodology quite often has resulted in inconsistent and conflicting findings due to partial anticipation of the events being examined and due to nonstationarity of the parameters in the estimation model. A multi-regime market model based methodology that allows for the proper treatment of these problems is proposed and is illustrated with an application in the policy setting process for SFAS No. 8.