The CPA Education Foundation has provided a grant to Simon Fraser University to enable the open access of research developed by SFU faculty Dennis Chung PhD CPA CA, Karel Hrazdil PhD CPA CGA, and Jiri Novak of Charles University in Prague and Naatavut Suwanyangyuan of Brock University (Hrazdil et al.).
The research paper is entitled, ” Does the large quantity of information in corporate disclosures hinder or enhance price discovery in the capital markets?” and is dated September 26, 2018.
Hrazdil and his co-authors analyzed how the quantity of information in corporate disclosures affects the efficiency with which investors incorporate newly acquired information into stock prices. Specifically, they investigated both numerical and textual levels of detail provided in 10-K disclosures and found that both disaggregation (numerical) quantity and textual quantity are associated with an overall improvement in the efficiency of information price discovery. The results provide empirical support for the benefits of detailed numerical or textual corporate disclosures.
Brenda Waechter, FCPA FCGA, chair of the CPAEF said, “The CPAEF’s mission is to advance accounting education in BC including supporting relevant and practical research.” She added, “we are proud to support SFU and enabling this important research to be made available more broadly.”