An Experiment in the Economic Consequences of Additional Disclosure: The Case of the Fair Value of Unlisted Equity Investments

Yuan Ding (First Author), Thomas Jeanjean (Participant Author), Cédric Jr. Lesage (Participant Author), Hervé Stolowy (Participant Author)

科研成果: 书/报告工作报告

摘要

We investigate the economic consequences of additional disclosure about assets with no active market in terms of liquidity, perception of information reliability and relevance. We use an experimental design: 181 MBA students are asked to value 24 investments. We manipulate the level of disclosure on the fair value of assets (Limited versus Full), the perception of expected profit (Gain versus Loss) and the firm's business risk (Low versus High). In the case of Limited (resp. Full) disclosure, participants are given a point estimate for the fair value of the investment (resp. plus a range of possible fair values). We find that in the Full disclosure situation, participants tend to make an offer more frequently, to bid prices lower than the fair value and to earn a lower return on their investments compared to the Limited disclosure case. These consequences vary with the environment (expected profit and risk).
源语言英语
出版状态已出版 - 1 1月 2010

Source

HAL-SHS (Sciences de l’Homme et de la Société)

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