The Relation Between Reporting Quality and Financing and Investment: Evidence from Changes in Financing Capacity
We use changes in the value of a firm's real estate assets as an exogenous change in a firm's financing capacity to examine (1) the relation between reporting quality and financing and investment conditional on this change, and (2) firms’ reporting quality responses to the change in financ...
| Prif Awduron: | , , |
|---|---|
| Awduron Eraill: | |
| Fformat: | Erthygl |
| Iaith: | en_US |
| Cyhoeddwyd: |
John Wiley & Sons, Inc
2014
|
| Mynediad Ar-lein: | http://hdl.handle.net/1721.1/87622 https://orcid.org/0000-0001-9424-3406 https://orcid.org/0000-0003-1231-7374 |
| _version_ | 1826213082903347200 |
|---|---|
| author | Balakrishnan, Karthik Core, John E. Verdi, Rodrigo |
| author2 | Sloan School of Management |
| author_facet | Sloan School of Management Balakrishnan, Karthik Core, John E. Verdi, Rodrigo |
| author_sort | Balakrishnan, Karthik |
| collection | MIT |
| description | We use changes in the value of a firm's real estate assets as an exogenous change in a firm's financing capacity to examine (1) the relation between reporting quality and financing and investment conditional on this change, and (2) firms’ reporting quality responses to the change in financing capacity. We find that financing and investment by firms with higher reporting quality is less affected by changes in real estate values than are financing and investment by firms with lower reporting quality. Further, firms increase reporting quality in response to decreases in financing capacity. Our findings contribute to the literature on reporting quality and investment, and on the determinants of reporting quality choices. |
| first_indexed | 2024-09-23T15:43:22Z |
| format | Article |
| id | mit-1721.1/87622 |
| institution | Massachusetts Institute of Technology |
| language | en_US |
| last_indexed | 2024-09-23T15:43:22Z |
| publishDate | 2014 |
| publisher | John Wiley & Sons, Inc |
| record_format | dspace |
| spelling | mit-1721.1/876222022-09-29T15:42:42Z The Relation Between Reporting Quality and Financing and Investment: Evidence from Changes in Financing Capacity Balakrishnan, Karthik Core, John E. Verdi, Rodrigo Sloan School of Management Core, John E. Verdi, Rodrigo We use changes in the value of a firm's real estate assets as an exogenous change in a firm's financing capacity to examine (1) the relation between reporting quality and financing and investment conditional on this change, and (2) firms’ reporting quality responses to the change in financing capacity. We find that financing and investment by firms with higher reporting quality is less affected by changes in real estate values than are financing and investment by firms with lower reporting quality. Further, firms increase reporting quality in response to decreases in financing capacity. Our findings contribute to the literature on reporting quality and investment, and on the determinants of reporting quality choices. Sloan School of Management Wharton School 2014-06-04T15:11:56Z 2014-06-04T15:11:56Z 2014-03 2011-09 Article http://purl.org/eprint/type/JournalArticle 00218456 http://hdl.handle.net/1721.1/87622 Balakrishnan, Karthik, John E. Core, and Rodrigo S. Verdi. “The Relation Between Reporting Quality and Financing and Investment: Evidence from Changes in Financing Capacity.” Journal of Accounting Research 52, no. 1 (March 2014): 1–36. https://orcid.org/0000-0001-9424-3406 https://orcid.org/0000-0003-1231-7374 en_US http://dx.doi.org/10.1111/1475-679X.12031 Journal of Accounting Research Creative Commons Attribution-Noncommercial-Share Alike http://creativecommons.org/licenses/by-nc-sa/4.0/ application/pdf John Wiley & Sons, Inc SSRN |
| spellingShingle | Balakrishnan, Karthik Core, John E. Verdi, Rodrigo The Relation Between Reporting Quality and Financing and Investment: Evidence from Changes in Financing Capacity |
| title | The Relation Between Reporting Quality and Financing and Investment: Evidence from Changes in Financing Capacity |
| title_full | The Relation Between Reporting Quality and Financing and Investment: Evidence from Changes in Financing Capacity |
| title_fullStr | The Relation Between Reporting Quality and Financing and Investment: Evidence from Changes in Financing Capacity |
| title_full_unstemmed | The Relation Between Reporting Quality and Financing and Investment: Evidence from Changes in Financing Capacity |
| title_short | The Relation Between Reporting Quality and Financing and Investment: Evidence from Changes in Financing Capacity |
| title_sort | relation between reporting quality and financing and investment evidence from changes in financing capacity |
| url | http://hdl.handle.net/1721.1/87622 https://orcid.org/0000-0001-9424-3406 https://orcid.org/0000-0003-1231-7374 |
| work_keys_str_mv | AT balakrishnankarthik therelationbetweenreportingqualityandfinancingandinvestmentevidencefromchangesinfinancingcapacity AT corejohne therelationbetweenreportingqualityandfinancingandinvestmentevidencefromchangesinfinancingcapacity AT verdirodrigo therelationbetweenreportingqualityandfinancingandinvestmentevidencefromchangesinfinancingcapacity AT balakrishnankarthik relationbetweenreportingqualityandfinancingandinvestmentevidencefromchangesinfinancingcapacity AT corejohne relationbetweenreportingqualityandfinancingandinvestmentevidencefromchangesinfinancingcapacity AT verdirodrigo relationbetweenreportingqualityandfinancingandinvestmentevidencefromchangesinfinancingcapacity |