Abstract

http://ssrn.com/abstract=1266659
 
 

References (82)



 
 

Citations (12)



 


 



The Benefits of Financial Statement Comparability


Gus De Franco


University of Toronto - Rotman School of Management

S.P. Kothari


Massachusetts Institute of Technology (MIT) - Sloan School of Management

Rodrigo S. Verdi


Massachusetts Institute of Technology (MIT)

March 14, 2011


Abstract:     
Investors, regulators, academics, and researchers all emphasize the importance of financial statement comparability. However, an empirical construct of comparability is typically not specified. In addition, little evidence exists on the benefits of comparability to users. This study attempts to fill these gaps by developing a measure of financial statement comparability. Empirically, this measure is positively related to analyst following and forecast accuracy, and negatively related to analysts’ dispersion in earnings forecasts. These results suggest that financial statement comparability lowers the cost of acquiring information, and increases the overall quantity and quality of information available to analysts about the firm.

Number of Pages in PDF File: 54

Keywords: Earnings Quality, Analysts, Earnings Attributes

JEL Classification: G29, M41, M45, G34

working papers series





Download This Paper

Date posted: September 11, 2008 ; Last revised: March 15, 2011

Suggested Citation

De Franco, Gus and Kothari, S.P. and Verdi, Rodrigo S., The Benefits of Financial Statement Comparability (March 14, 2011). Available at SSRN: http://ssrn.com/abstract=1266659 or http://dx.doi.org/10.2139/ssrn.1266659

Contact Information

Gus De Franco
University of Toronto - Rotman School of Management ( email )
105 St. George Street
Toronto, Ontario M5S 3E6
Canada
S.P. Kothari
Massachusetts Institute of Technology (MIT) - Sloan School of Management ( email )
E52-325
Cambridge, MA 02142
United States
617-253-0994 (Phone)
617-253-0603 (Fax)
Rodrigo S. Verdi (Contact Author)
Massachusetts Institute of Technology (MIT) ( email )
Sloan School of Management
100 Main Street E62-679
Cambridge, MA 02142
United States
(617) 253 2956 (Phone)
Feedback to SSRN


Paper statistics
Abstract Views: 6,015
Downloads: 1,997
Download Rank: 3,630
References:  82
Citations:  12

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo6 in 0.328 seconds