Is the Quality of Critical Accounting Policy Disclosures Lower for Companies with High Information Asymmetry?*

26 Pages Posted: 22 Sep 2004

See all articles by Craig Paprocki

Craig Paprocki

University of Alabama - Culverhouse College of Commerce & Business Administration

Mary S. Stone

University of Alabama - Culverhouse College of Commerce & Business Administration

Date Written: September 15, 2004

Abstract

Our paper (1) documents public companies' most frequent choices of critical accounting policies, (2) tests whether the number and quality of critical accounting policies disclosures increased from the first to second year after the release of SEC cautionary advice on critical accounting policy disclosures, and (3) tests whether the quality of critical accounting policy disclosures is significantly associated with information asymmetry. Our results show an increase in the number and quality of critical accounting policy disclosures and a significant association between the quality of those disclosures and a proxy for information asymmetry.

Suggested Citation

Paprocki, Craig and Stone, Mary S., Is the Quality of Critical Accounting Policy Disclosures Lower for Companies with High Information Asymmetry?* (September 15, 2004). Available at SSRN: https://ssrn.com/abstract=594202 or http://dx.doi.org/10.2139/ssrn.594202

Craig Paprocki (Contact Author)

University of Alabama - Culverhouse College of Commerce & Business Administration ( email )

Culverhouse College of Business
Tuscaloosa, AL 35487-0223
United States

Mary S. Stone

University of Alabama - Culverhouse College of Commerce & Business Administration ( email )

Box 870223
School of Accountancy 314 Alston Hall
Tuscaloosa, AL 35487-0223
United States
205-348-2915 (Phone)
205-348-8453 (Fax)

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