Explaining the Accounting Disclosure Index of Stock Exchanges by Foreign Exchange Market Activity

19 Pages Posted: 23 Aug 2010

See all articles by Aziz Bakay

Aziz Bakay

Gediz University

Murad Moqbel

Our Lady of the Lake University

Date Written: August 20, 2010

Abstract

In this article, researcher-created accounting disclosure index of 23 stock exchanges for the year 1992 and its relationship with variables including foreign exchange turnover, economic and financial indicators are investigated. The accounting disclosure index of global stock exchanges crafted by Adhikari and Tondkar (1992) is regressed on foreign market turnover which is utilized as a proxy for foreign exchange market activity. The OLS results support that along with the activity of foreign exchange market; GNI per capita, market capitalization, energy and electric consumption, number of listed companies are significantly related with the accounting disclosure index. The foreign market turnover is found to be positively influencing the accounting disclosure index. The model explains the 73% of the variation in the index with an F-ratio of 26.56 indicating the overall significance of the model.

Keywords: Accounting Disclosure Index, Stock Exchanges, Foreign Exchange Market Activity, Exchange Market Turnover

JEL Classification: M41, F31

Suggested Citation

Bakay, Aziz and Moqbel, Murad, Explaining the Accounting Disclosure Index of Stock Exchanges by Foreign Exchange Market Activity (August 20, 2010). Available at SSRN: https://ssrn.com/abstract=1662137 or http://dx.doi.org/10.2139/ssrn.1662137

Aziz Bakay (Contact Author)

Gediz University ( email )

Izmir
Turkey

Murad Moqbel

Our Lady of the Lake University ( email )

411 S.W. 24th Street
San Antonio, TX 78207
United States

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