Market reaction to the 1976 replacement cost disclosures

A variety of tests are conducted to determine whether replacement cost disclosures as mandated by the Securities and Exchange Commission's Accounting Series Release 190 provided information to capital market agents. In particular, the fiscal year 1976 disclosures made in early 1977 are examined...

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Bibliographic Details
Published in:Journal of accounting & economics 1980-08, Vol.2 (2), p.107-125
Main Authors: Gheyara, Kelly, Boatsman, James
Format: Article
Language:English
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Summary:A variety of tests are conducted to determine whether replacement cost disclosures as mandated by the Securities and Exchange Commission's Accounting Series Release 190 provided information to capital market agents. In particular, the fiscal year 1976 disclosures made in early 1977 are examined. Information content is assessed by observing distributions of rates of return on common stocks. These distributions are estimated using both time series and cross-sectional data. No evidence of information content is found.
ISSN:0165-4101
1879-1980
DOI:10.1016/0165-4101(80)90008-7