Please use this identifier to cite or link to this item: http://hdl.handle.net/10397/43701
Title: Recognition of future news in earnings and price bubbles in experimental asset markets
Authors: Ghosh, S
Radhakrishnan, S
Srinidhi, B
Su, L 
Keywords: Asset price bubbles
Fair value accounting
Fundamental values
Neutral accounting
Recognition of future news
Issue Date: 2015
Publisher: SAGE Publications
Source: Journal of accounting, auditing and finance, 2015, v. 30, no. 4, p. 558-575 How to cite?
Journal: Journal of accounting, auditing and finance 
Abstract: In this article, we use an experimental approach to examine the effect of reporting regimes on asset prices. We examine four different reporting regimes: the no recognition (NR) regime where no expected future cash flows are recognized; the full recognition (FR) regime where both the expected good news and expected bad news pertaining to the next period cash flows are recognized in current earnings; the good news recognition (GR) regime where only the expected good news pertaining to the next period cash flows are recognized in current earnings; and the bad news recognition (BR) regime where only the expected bad news pertaining to the next period cash flows are recognized in current earnings. We find that the NR, BR, and GR regimes are associated with more intense asset price bubbles than the FR regime. We also find that between the BR and GR regimes, the BR regime is associated with more intense asset price bubbles than the GR regime. Our findings shed insights about how biased (non-neutral) reporting regimes could affect the price formation process.
URI: http://hdl.handle.net/10397/43701
ISSN: 0148-558X
DOI: 10.1177/0148558X15593854
Appears in Collections:Journal/Magazine Article

Access
View full-text via PolyU eLinks SFX Query
Show full item record

SCOPUSTM   
Citations

1
Last Week
0
Last month
Citations as of Jun 22, 2017

Page view(s)

16
Last Week
2
Last month
Checked on Jun 25, 2017

Google ScholarTM

Check

Altmetric



Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.