Accounting policy makers determine the level of accounting disclosure and have a need to assess the effect of their disclosure policies. Public disclosure of accounting information has a direct effect on stock price and an indirect effect induced by changes in the demand for private information. The purpose of this study is to investigate the relationship between public and private information. An experimental market approach is used to manipulate the level of public disclosure and to isolate the disclosure's effect. / The markets are structured so that subjects receive a given level of public information prior to the market and private information can be acquired during the market. Hence, the dependent variables, the informedness of price and private information consumption, are determined endogenously. This market design allows the level of public disclosure to affect the dependent variables as well as permitting them to affect each other. As a result, both the direct and indirect effects of public disclosure can be assessed. / The test results of the study's three primary hypotheses indicate the existence of an inverse relationship between public and private information and between the informedness of price and the consumption of private information. The evidence also indicates that the informedness of price tends to increase with increases in the level of public disclosure. These results support the predictions of Verrecchia's theory and therefore demonstrate the theory's applicability to laboratory markets. / Source: Dissertation Abstracts International, Volume: 49-01, Section: A, page: 0113. / Major Professor: William Hillison. / Thesis (Ph.D.)--The Florida State University, 1987.
| Identifer | oai:union.ndltd.org:fsu.edu/oai:fsu.digital.flvc.org:fsu_76210 |
| Contributors | Tucker, Robert Riley., Florida State University |
| Source Sets | Florida State University |
| Language | English |
| Detected Language | English |
| Type | Text |
| Format | 288 p. |
| Rights | On campus use only. |
| Relation | Dissertation Abstracts International |
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