Accounting Numbers and Information Asymmetry: Evidence from Loss Firms

@inproceedings{Ertimur2004AccountingNA,
  title={Accounting Numbers and Information Asymmetry: Evidence from Loss Firms},
  author={Yonca Ertimur},
  year={2004}
}
This paper studies whether firms reporting losses subsequently experience higher levels of information asymmetry among investors relative to firms reporting profits. Using bid-ask spreads as a measure of information asymmetry, I test whether loss firms have higher bid-ask spreads than profit firms after controlling for determinants of bid-ask spreads as identified by previous literature. I also differentiate between loss firms based on the history of losses and test whether multiple loss firms… CONTINUE READING

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