Supply and Demand of Information for Firm Valuation

29 Pages Posted: 6 Sep 2019

Date Written: August 2019


The concept that accounting represents the information economics of the firm is a premise for the allocation of scarce resources. The analysis starts with a clean surplus model as a basis for the conceptual framework. Then theoretical firm information economic supply-and-demand features are incorporated within a path diagram. This framework is investigated empirically with simultaneous regression equations and a structural equation model (SEM). Equations have explanatory power. And, a latent variable measure of internally generated intangible assets positively and significantly affects net income. Thus, the study expands the research frontier for SEM financial accounting research.

Keywords: Information Economics, SEM, Intangible Assets

JEL Classification: C5, G12, M00

Suggested Citation

Swanson, Zane L., Supply and Demand of Information for Firm Valuation (August 2019). Available at SSRN: or

Zane L. Swanson (Contact Author)

University of Central Oklahoma ( email )

100 North University Drive
Edmond, OK 73034
United States

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