Discussion of ‘When Does the Peer Information Environment Matter?’

Posted: 9 Sep 2019

See all articles by Dawn A. Matsumoto

Dawn A. Matsumoto

University of Washington - Department of Accounting

Sarah Shaikh

University of Washington - Department of Accounting; University of Washington - Department of Accounting; University of Washington - Department of Accounting

Date Written: 2017

Abstract

Shroff et al. (2017) examine whether a richer peer information environment reduces the cost of capital for firms with limited firm-specific information and whether this effect decreases as firm-specific information becomes more prevalent. Although much of the evidence supporting their hypotheses is based on a small highly idiosyncratic sample of firms issuing initial public debt, the authors provide corroborating evidence using samples of IPO and SEO firms. However, two research design choices make it difficult to discern the nature of the peer information that substitutes for firm information. Hence, the implications of the findings for disclosure regulation are limited.

Keywords: Peer information environment, Disclosure externalities, Regulation

JEL Classification: M41

Suggested Citation

Matsumoto, Dawn and Shaikh, Sarah, Discussion of ‘When Does the Peer Information Environment Matter?’ (2017). Journal of Accounting & Economics (JAE), Vol. 64, No. 2-3, 2017, Available at SSRN: https://ssrn.com/abstract=3443163

Dawn Matsumoto

University of Washington - Department of Accounting ( email )

224 Mackenzie Hall, Box 353200
Seattle, WA 98195-3200
United States
206-543-4454 (Phone)
206-685-9392 (Fax)

Sarah Shaikh (Contact Author)

University of Washington - Department of Accounting ( email )

224 Mackenzie Hall, Box 353200
Seattle, WA 98195-3200
United States

University of Washington - Department of Accounting ( email )

224 Mackenzie Hall, Box 353200
Seattle, WA 98195-3200
United States

University of Washington - Department of Accounting ( email )

Seattle, WA WA
United States

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