Abstract:In this paper, we assess the equity value relevance of disclosure-derived financial statement adjustments. In price levels and returns tests, we find that reported financial numbers have relatively superior explanatory power over adjusted Rev. Pac. Basin Finan. Mark. Pol. 2014.17. Downloaded from www.worldscientific.com by UNIVERSITY OF CALIFORNIA @ SAN DIEGO on 04/13/15. For personal use only.numbers. Only when adjustments are included along with reported numbers in pricing regressions do adjustments retain s… Show more
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