Transparency and the Equity Market

Olsson and Sievers reinvestigate how financial reporting transparency can be measured in the equity market. They team up with A03, A08, B10, and the German Business Panel in constructing an extensive dataset describing the financial reporting behavior of publicly listed firms. Using these data and exploiting market reactions around exogenous macro news events, they will identify financial reporting components that are theoretically and empirically connected to equity capital market outcomes. Based on these insights, they will revisit prior evidence on the capital markets effects of financial reporting information and explore whether refined measures of financial reporting transparency can help to improve company valuation.

    Participating Institutions

    TRR 266‘s main locations are Paderborn University (Coordinating University), HU Berlin, and University of Mannheim. All three locations have been centers for accounting and tax research for many years. They are joined by researchers from LMU Munich, Frankfurt School of Finance and Management, WHU – Otto Beisheim School of Management, European School of Management and Technology in Berlin and Goethe University Frankfurt who share the same research agenda.