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.