Investigating The Role of Accounting Information Comparability in Mitigating Stock Price Crash Risk: Evidence from China’s Knowledge-Based Economy

Yang, Kaiyuan; Huo, Xiaoyan; Sun, Zhaoyu; Li, Peigong; Sindakis, Stavros; Showkat, Saloome

doi:10.1007/s13132-023-01475-7

Cited by 2 publications

(3 citation statements)

References 125 publications

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“…A growing number of studies have shown that highly comparable accounting information can effectively improve the information content of stock prices and thus reduce the cost of information comprehension for investors (Yang et al 2023). Furthermore, increased accounting information comparability can serve as a disincentive for management to hide bad news, thereby reducing the risk of stock price collapse (Karolyi et al 2020).…”

Section: The Moderating Effect Of Accounting Information Comparabilit...mentioning

confidence: 99%

Impacts of Investor Attention and Accounting Information Comparability on Stock Returns: Empirical Evidence from Chinese Listed Companies

Zhao,

Naktnasukanjn,

Dawod

et al. 2024

IJFS

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The efficient capital markets hypothesis (EMH) posits that security prices incorporate all available information in capital markets. Nevertheless, real stock markets often exhibit speculative behavior due to information asymmetry and the limited rationality of investors. This paper employs Thank you for your feedback. I've reviewed the changes, and the adjustment made to revise the year from 2019 to 2023 according to the reference information is accurate. statistical analysis, a multiple regression approach, and robustness tests to investigate the impact of investor attention and accounting information comparability on stock returns. We collected monthly data from all Chinese A-share stocks listed on the main board of the Shanghai Stock Exchange for the period 2017–2021. Our findings reveal a significant positive correlation between current investor attention and current monthly stock returns and a significant negative correlation between lagged investor attention and current monthly stock returns. Moreover, accounting information comparability serves as a substantial moderator, amplifying the positive effect of current investor attention on current stock returns and mitigating the negative impact of lagged investor attention. We investigate the indicator of accounting information comparability from the perspective of investor attention. Significantly, we use accounting information comparability as a moderating variable for the first time to assess its influence on stock returns. Our results demonstrate that accounting information comparability significantly contributes to mitigating excessive share price declines and stimulating share price increases. This discovery also acts as an internal driver for listed companies to proactively improve accounting information comparability.

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Section: The Moderating Effect Of Accounting Information Comparabilit...mentioning

confidence: 99%

Impacts of Investor Attention and Accounting Information Comparability on Stock Returns: Empirical Evidence from Chinese Listed Companies

Zhao,

Naktnasukanjn,

Dawod

et al. 2024

IJFS

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show abstract

“…1. Risk Understanding: Auditors must have a deep understanding of the types of risks faced by the organization, including strategic, operational, financial, and compliance risks (Yang et al, 2023). 2.…”

Section: Definition and Basic Principles Of Risk-based Auditmentioning

confidence: 99%

“…Internal Controls and Internal Audits: Strong internal controls and independent internal audits are essential in risk management. Internal control includes procedures and policies to prevent and detect errors and deviations, while internal audit functions to evaluate the effectiveness of these controls (Yang et al, 2023). 6.…”

Section: Journal Of International Multidisciplinary Researchmentioning

confidence: 99%

Analysis of the Role of Risk Based Audit in Banking

Tuti Dharmawati,

Wa Ode Muhardiana,

Ayu Puspita Rini

et al. 2024

JIMR

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Risk based audit (RBA) is an approach that is increasingly being applied in the banking sector to increase the effectiveness of risk management and compliance with regulations. This approach helps banks identify high-risk areas and prioritize audits according to the level of risk. This research uses qualitative methods with a literature research approach. Data sources consist of scientific journal articles, books, reports and documents related to risk-based and banking audits. Research findings show that the RBA has several key roles in improving banking performance. First, RBA improves operational efficiency and effectiveness by focusing audits on high-risk areas. Second, the RBA enables banks to proactively identify and manage risks, thereby strengthening financial and operational stability. Third, the RBA ensures that banks are more compliant with regulations and industry standards, reducing the risk of sanctions and fines. In addition, the implementation of RBA encourages the formation of a strong risk management culture and the use of information technology to support the risk management process. Risk based audit plays a significant role in improving banking performance. By improving operational efficiency, managing risk proactively, ensuring regulatory compliance, establishing a strong risk management culture, and leveraging technology, banks can achieve stability and better performance in the long term. These findings support the importance of implementing RBA as the main strategy in risk management and supervision in the banking sector.

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Investigating The Role of Accounting Information Comparability in Mitigating Stock Price Crash Risk: Evidence from China’s Knowledge-Based Economy

Cited by 2 publications

References 125 publications

Impacts of Investor Attention and Accounting Information Comparability on Stock Returns: Empirical Evidence from Chinese Listed Companies

Impacts of Investor Attention and Accounting Information Comparability on Stock Returns: Empirical Evidence from Chinese Listed Companies

Analysis of the Role of Risk Based Audit in Banking

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