2009 Fiscal Year Final Research Report
Theoretical and empirical research on the disclosure and valuation of multinational firms
| Project/Area Number |
19730314
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| Research Category |
Grant-in-Aid for Young Scientists (B)
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| Allocation Type | Single-year Grants |
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| Research Field |
Accounting
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| Research Institution | Aichi Shukutoku University |
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Principal Investigator |
ASANO Takashi Aichi Shukutoku University, 社会科学研究科, 准教授 (30329833)
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| Project Period (FY) |
2007 – 2009
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| Keywords | 所在地別セグメント情報の質 / 情報の非対称性 / 市場のミスプライシング / 会計基準の意義 / 利益の持続性 / 情報開示戦略 / 多国籍企業の評価 / 資本コスト |
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| Research Abstract |
I investigate how market prices the persistence of domestic and foreign earnings for multinational firms and whether the pricing is affected by the quality of geographic segment reporting. I find (1) market underprices the persistence of foreign earnings; (2) the mispricing of foreign earnings observed in firms with low quality reporting no longer exists in firms with high quality reporting. The latter is important because market's mispricing of foreign earnings lessens as segment reporting quality increases. In Japan, the new standard about segment reporting is effective for fiscal year beginning after March 31, 2010. New standard introduces management approach and achieves the convergence with international standards such as IFRS and SFAS. The results of this study suggest that positive effects may occur following the implementation of new standard in Japan.
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