By adopting and integrating the 3 levels of specific frameworks discussed herein, a financial institution can develop, maintain, improve, and sustain its enterprise risk management and compliance frameworks. The proposed risk management framework identifies 3 levels for bridging the gaps in industry frameworks of prudent risk management and information assurance. Context-sensitive adaptation can be enabled by integration across vulnerability analysis and penetration testing embedded within overall systems and networks controls framework and risk management frameworks. Given the discussed contexts of risk management, controls, and compliance frameworks, compliance can benefit from adapting the proposed framework to institution’s specific needs. Integration across the 3 levels of vulnerability analysis and penetration testing embedded within overall systems and networks controls and overarching risk management frameworks can facilitate such context-sensitive adaptation. From perspective of the ISACA framework, vulnerability assessment and penetration testing can be embedded within IT audit framework of assessment of adequacy of internal controls for effective risk management and compliance.
{"title":"Toward Integrated Enterprise Risk Management, Model Risk Management & Cyber-Finance Risk Management: Bridging Networks, Systems and Controls Frameworks","authors":"Y. Malhotra","doi":"10.2139/ssrn.2792629","DOIUrl":"https://doi.org/10.2139/ssrn.2792629","url":null,"abstract":"By adopting and integrating the 3 levels of specific frameworks discussed herein, a financial institution can develop, maintain, improve, and sustain its enterprise risk management and compliance frameworks. The proposed risk management framework identifies 3 levels for bridging the gaps in industry frameworks of prudent risk management and information assurance. Context-sensitive adaptation can be enabled by integration across vulnerability analysis and penetration testing embedded within overall systems and networks controls framework and risk management frameworks. Given the discussed contexts of risk management, controls, and compliance frameworks, compliance can benefit from adapting the proposed framework to institution’s specific needs. Integration across the 3 levels of vulnerability analysis and penetration testing embedded within overall systems and networks controls and overarching risk management frameworks can facilitate such context-sensitive adaptation. From perspective of the ISACA framework, vulnerability assessment and penetration testing can be embedded within IT audit framework of assessment of adequacy of internal controls for effective risk management and compliance.","PeriodicalId":414983,"journal":{"name":"IRPN: Innovation & Finance (Topic)","volume":"42 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2015-10-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116295589","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
What determines government policy responses to banking crises? One prominent analysis of pre-1999 post-war crises claims that democratic governments seek to minimize the public burden of bank insolvency to avoid electoral sanction, and thus are less likely to bail out banks than authoritarian governments. We find no evidence to support this contention. On the contrary, we contend that this limited time window of analysis omits some important dynamic trends; most notably, financialization, that are shaping policy responses to crises in all countries, democratic or otherwise. Drawing on a new dataset of policy responses since the mid-1970s, we use a broader time window to investigate the role of different factors in the evolving policy responses to such crises. We find that rising financialization creates both a generalized bailout propensity for all governments operating in economies likely to be more open to financial innovation, more complexity, and interconnectedness. There is also a specific bailout propensity in democratic countries associated with the relative importance of banks and private sector leverage.
{"title":"Policy Responses to Banking Crises Over the Longer Run","authors":"Jeffrey M. Chwieroth, A. Walter","doi":"10.2139/ssrn.2715468","DOIUrl":"https://doi.org/10.2139/ssrn.2715468","url":null,"abstract":"What determines government policy responses to banking crises? One prominent analysis of pre-1999 post-war crises claims that democratic governments seek to minimize the public burden of bank insolvency to avoid electoral sanction, and thus are less likely to bail out banks than authoritarian governments. We find no evidence to support this contention. On the contrary, we contend that this limited time window of analysis omits some important dynamic trends; most notably, financialization, that are shaping policy responses to crises in all countries, democratic or otherwise. Drawing on a new dataset of policy responses since the mid-1970s, we use a broader time window to investigate the role of different factors in the evolving policy responses to such crises. We find that rising financialization creates both a generalized bailout propensity for all governments operating in economies likely to be more open to financial innovation, more complexity, and interconnectedness. There is also a specific bailout propensity in democratic countries associated with the relative importance of banks and private sector leverage.","PeriodicalId":414983,"journal":{"name":"IRPN: Innovation & Finance (Topic)","volume":"50 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2015-09-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116594039","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This paper uses a randomized field experiment to identify which start-up characteristics are most important to investors in early stage firms. The experiment randomizes investors’ information sets of fund-raising start-ups. The average investor responds strongly to information about the founding team, but not to firm traction or existing lead investors. In contrast, inexperienced investors respond to all information categories. Our results suggest that information about human assets is causally important for the funding of early stage firms, and hence, for entrepreneurial success.
{"title":"Attracting Early Stage Investors: Evidence from a Randomized Field Experiment","authors":"Shai Bernstein, Arthur Korteweg, K. Laws","doi":"10.2139/ssrn.2432044","DOIUrl":"https://doi.org/10.2139/ssrn.2432044","url":null,"abstract":"This paper uses a randomized field experiment to identify which start-up characteristics are most important to investors in early stage firms. The experiment randomizes investors’ information sets of fund-raising start-ups. The average investor responds strongly to information about the founding team, but not to firm traction or existing lead investors. In contrast, inexperienced investors respond to all information categories. Our results suggest that information about human assets is causally important for the funding of early stage firms, and hence, for entrepreneurial success.","PeriodicalId":414983,"journal":{"name":"IRPN: Innovation & Finance (Topic)","volume":"134 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2015-08-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132499395","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Unlike traditional venture capitalists, corporate venture capital (CVC) investors are likely to eventually acquire portfolio ventures. I nd that the likelihood of such an acquisition decreases with the uncertainty associated with the venture’s innovation and increases with the number of CVCs co-invested. Moreover, CVCs with lower level of internal innovation are more likely to acquire portfolio ventures. However, the acquisition signals poor prospects for future innovation, which explains the negative market reaction to the announcements of such deals. I also show that CVCs appear to be learning through active management of their portfolios and acquire ventures backed by other CVCs when their own portfolio performs poorly.
{"title":"Strategic Acquisitions by Corporate Venture Capital Investors","authors":"Lora Dimitrova","doi":"10.2139/ssrn.2553786","DOIUrl":"https://doi.org/10.2139/ssrn.2553786","url":null,"abstract":"Unlike traditional venture capitalists, corporate venture capital (CVC) investors are likely to eventually acquire portfolio ventures. I nd that the likelihood of such an acquisition decreases with the uncertainty associated with the venture’s innovation and increases with the number of CVCs co-invested. Moreover, CVCs with lower level of internal innovation are more likely to acquire portfolio ventures. However, the acquisition signals poor prospects for future innovation, which explains the negative market reaction to the announcements of such deals. I also show that CVCs appear to be learning through active management of their portfolios and acquire ventures backed by other CVCs when their own portfolio performs poorly.","PeriodicalId":414983,"journal":{"name":"IRPN: Innovation & Finance (Topic)","volume":"26 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2015-01-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"134458565","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Bitcoins are scarce digital commodities that enable parties to transmit messages over a network that serves as a universal public ledger. Bitcoins fall within the definition of “commodity” under the Commodity Exchange Act (CEA) such that derivatives contracts that reference bitcoins are subject to regulation by the Commodity Futures Trading Commission. Like other derivatives, Bitcoin derivatives would likely not be subject to the full scope of regulation under the CEA to the extent such derivatives involve physical delivery (as opposed to cash settlement) or are nonfungible and not independently traded. In addition, Bitcoin swaps are currently too illiquid to be subject to mandatory clearing. A growing number of firms are offering Bitcoin derivatives, most of which are for retail traders. In addition to traditional derivatives that reference bitcoins, the Bitcoin (block chain) protocol can potentially enable automated derivatives contracts that securely trade, clear, and settle without the use of trusted intermediaries. The CFTC should consider an exemption for block chain derivatives that meet its policy objectives as a result of the rules that the underlying code applies to the transactions.
{"title":"Regulating Bitcoin and Block Chain Derivatives","authors":"Houman B. Shadab","doi":"10.2139/SSRN.2508707","DOIUrl":"https://doi.org/10.2139/SSRN.2508707","url":null,"abstract":"Bitcoins are scarce digital commodities that enable parties to transmit messages over a network that serves as a universal public ledger. Bitcoins fall within the definition of “commodity” under the Commodity Exchange Act (CEA) such that derivatives contracts that reference bitcoins are subject to regulation by the Commodity Futures Trading Commission. Like other derivatives, Bitcoin derivatives would likely not be subject to the full scope of regulation under the CEA to the extent such derivatives involve physical delivery (as opposed to cash settlement) or are nonfungible and not independently traded. In addition, Bitcoin swaps are currently too illiquid to be subject to mandatory clearing. A growing number of firms are offering Bitcoin derivatives, most of which are for retail traders. In addition to traditional derivatives that reference bitcoins, the Bitcoin (block chain) protocol can potentially enable automated derivatives contracts that securely trade, clear, and settle without the use of trusted intermediaries. The CFTC should consider an exemption for block chain derivatives that meet its policy objectives as a result of the rules that the underlying code applies to the transactions.","PeriodicalId":414983,"journal":{"name":"IRPN: Innovation & Finance (Topic)","volume":"67 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2014-10-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116000720","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
In April 2012, the Jumpstart Our Business Startups Act (JOBS Act) was enacted to help revitalize the initial public offering (IPO) market, especially for small firms. During the year ending March 2014, IPO volume and the proportion of small firm issuers was the largest since 2000. Controlling for market conditions, we estimate that the JOBS Act has led to 21 additional IPOs annually, a 25% increase over pre-JOBS levels. Firms with high proprietary disclosure costs, such as biotechnology and pharmaceutical firms, increase IPO activity the most. These firms are also more likely to take advantage of the act׳s de-risking provisions, allowing firms to file the IPO confidentially while testing-the-waters.
{"title":"The JOBS Act and IPO Volume: Evidence that Disclosure Costs Affect the IPO Decision","authors":"Michael Dambra, L. Field, M. Gustafson","doi":"10.2139/SSRN.2459591","DOIUrl":"https://doi.org/10.2139/SSRN.2459591","url":null,"abstract":"In April 2012, the Jumpstart Our Business Startups Act (JOBS Act) was enacted to help revitalize the initial public offering (IPO) market, especially for small firms. During the year ending March 2014, IPO volume and the proportion of small firm issuers was the largest since 2000. Controlling for market conditions, we estimate that the JOBS Act has led to 21 additional IPOs annually, a 25% increase over pre-JOBS levels. Firms with high proprietary disclosure costs, such as biotechnology and pharmaceutical firms, increase IPO activity the most. These firms are also more likely to take advantage of the act׳s de-risking provisions, allowing firms to file the IPO confidentially while testing-the-waters.","PeriodicalId":414983,"journal":{"name":"IRPN: Innovation & Finance (Topic)","volume":"59 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2014-08-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"134310787","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The advent of electronic banking offers banking firms a new frontier of opportunities and challenges. This study investigates how social factors, awareness, consumer perceptions and attitudes towards electronic banking influence the adoption of electronic banking in Zimbabwe. In Zimbabwe little is known and understood about the emergence of electronic banking, this is because electronic banking is new, and so consumer acceptance and use of electronic banking is still limited. This study has reviewed current literature and opinions about factors influencing electronic banking, thus including consumer perceptions towards electronic banking characteristics and social influences that affect consumer adoption of this mode of banking. This study also explains the methodology used in conducting interviews to obtain primary information for this study. This study presents both the results of the interviews and the analysis of these results, with figures to determine the extent that the factors studied influence customer adoption of electronic banking. Psychological factors including, compatibility, complexity, risk, convenience, security, privacy and cost were found to influence the adoption of electronic banking. The theoretical contributions and the practical implications of the findings are discussed and suggestions for future research are presented.
{"title":"Customers’ Adoption of Electronic Banking: An Investigation on the Commercial Banking Industry in Zimbabwe","authors":"Musa Makosana","doi":"10.2139/ssrn.2466413","DOIUrl":"https://doi.org/10.2139/ssrn.2466413","url":null,"abstract":"The advent of electronic banking offers banking firms a new frontier of opportunities and challenges. This study investigates how social factors, awareness, consumer perceptions and attitudes towards electronic banking influence the adoption of electronic banking in Zimbabwe. In Zimbabwe little is known and understood about the emergence of electronic banking, this is because electronic banking is new, and so consumer acceptance and use of electronic banking is still limited. This study has reviewed current literature and opinions about factors influencing electronic banking, thus including consumer perceptions towards electronic banking characteristics and social influences that affect consumer adoption of this mode of banking. This study also explains the methodology used in conducting interviews to obtain primary information for this study. This study presents both the results of the interviews and the analysis of these results, with figures to determine the extent that the factors studied influence customer adoption of electronic banking. Psychological factors including, compatibility, complexity, risk, convenience, security, privacy and cost were found to influence the adoption of electronic banking. The theoretical contributions and the practical implications of the findings are discussed and suggestions for future research are presented.","PeriodicalId":414983,"journal":{"name":"IRPN: Innovation & Finance (Topic)","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2014-07-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129334299","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
One of the key problems relating to concluding transactions on financial markets is the definition of whether or not, in given market conditions, we should conclude a specific transaction. This problem applies to all transactions irrespective of whether they are concluded in a discretionary manner by a person, or by the appropriate software. The subject of research presented in this document was practical verification of the hypothesis that the use of filters composed of classifiers independent of the main algorithm of the strategy may improve the characteristics of this strategy. This means constructing an additional filter, independent of the main logic and algorithm of the strategy, either allowing the transaction to be conducted or not. The strategy being examined is a real strategy used in trading in shares on the American market. Many various classifiers based on various algorithms, as well as sets of classifiers composed of them, were examined.As a consequence of this research interesting results were obtained, noticeably improving the various characteristics of an automatic strategy for which the filters had been created. The research confirmed the justification for using classifiers as a filter for transactions for the automatic strategy under examination.
{"title":"Application of Binary Classifiers to Filter Transactions on the Financial Market","authors":"Andrzej Endler","doi":"10.2139/ssrn.2462169","DOIUrl":"https://doi.org/10.2139/ssrn.2462169","url":null,"abstract":"One of the key problems relating to concluding transactions on financial markets is the definition of whether or not, in given market conditions, we should conclude a specific transaction. This problem applies to all transactions irrespective of whether they are concluded in a discretionary manner by a person, or by the appropriate software. The subject of research presented in this document was practical verification of the hypothesis that the use of filters composed of classifiers independent of the main algorithm of the strategy may improve the characteristics of this strategy. This means constructing an additional filter, independent of the main logic and algorithm of the strategy, either allowing the transaction to be conducted or not. The strategy being examined is a real strategy used in trading in shares on the American market. Many various classifiers based on various algorithms, as well as sets of classifiers composed of them, were examined.As a consequence of this research interesting results were obtained, noticeably improving the various characteristics of an automatic strategy for which the filters had been created. The research confirmed the justification for using classifiers as a filter for transactions for the automatic strategy under examination.","PeriodicalId":414983,"journal":{"name":"IRPN: Innovation & Finance (Topic)","volume":"228 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2014-07-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127007924","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Social media organizations have increasingly tapped public stock markets, yet – despite their undisputed public appeal and improving economics – the success of several high-profile IPOs has been rather lackluster. This paper revisits the going-public strategies of leading international social media stocks and identifies their failure and success factors from the operating, commercial and behavioral perspectives. Among the companies covered by the research are the top components of the Solactive Social Media (Total Return) Index (SOCL): widely perceived as the most globally representative benchmark of exchange listed social media equities (including Facebook, Inc., Tencent Holdings Ltd., Sina Corp., LinkedIn Corp., Pandora Media, Inc., Groupon, Inc., Yandex Nv, Dena Co. Ltd., Google Inc. and Zynga Inc.) as well as selected recent IPOs (including Twitter, Inc.). The paper tracts the origins of the social media companies, their IPO decisions as well as their flotation and aftermarket performance. The analysis leads to conclusions and recommendations relating to future social media IPO scenarios (with particular emphasis on prerequisites of successful IPO management with regard to social media initiatives). Given the novelty and limited record of most social media public flotations, the paper represents a pioneering research effort aimed at explaining the utility of the IPO route for the global social media industry.
社交媒体组织越来越多地利用公开股票市场，然而，尽管它们的公众吸引力无可争议，经济状况也在改善，但几次高调ipo的成功却相当平淡。本文回顾了国际领先的社交媒体股票的上市策略，并从运营、商业和行为的角度找出其失败和成功的因素。研究涵盖的公司包括Solactive Social Media (Total Return) Index (SOCL)的顶级成分股，SOCL被广泛认为是全球最具代表性的上市社交媒体股票基准(包括Facebook, Inc.，腾讯控股有限公司，新浪公司，领英公司，Pandora Media, Inc.， Groupon, Yandex Nv, Dena Co. Ltd.， Google Inc.和Zynga Inc.)，以及最近选定的ipo(包括Twitter, Inc.)。本文分析了社交媒体公司的起源、它们的IPO决策以及它们的上市和上市后表现。分析得出了与未来社交媒体IPO情景相关的结论和建议(特别强调了社交媒体举措成功IPO管理的先决条件)。鉴于大多数社交媒体公开发行的新颖性和有限记录，本文代表了一项开创性的研究工作，旨在解释IPO路线对全球社交媒体行业的效用。
{"title":"Social Media Initial Public Offerings (IPOs). Failure and Success Factors","authors":"Piotr Wiśniewski","doi":"10.2139/ssrn.2609696","DOIUrl":"https://doi.org/10.2139/ssrn.2609696","url":null,"abstract":"Social media organizations have increasingly tapped public stock markets, yet – despite their undisputed public appeal and improving economics – the success of several high-profile IPOs has been rather lackluster. This paper revisits the going-public strategies of leading international social media stocks and identifies their failure and success factors from the operating, commercial and behavioral perspectives. Among the companies covered by the research are the top components of the Solactive Social Media (Total Return) Index (SOCL): widely perceived as the most globally representative benchmark of exchange listed social media equities (including Facebook, Inc., Tencent Holdings Ltd., Sina Corp., LinkedIn Corp., Pandora Media, Inc., Groupon, Inc., Yandex Nv, Dena Co. Ltd., Google Inc. and Zynga Inc.) as well as selected recent IPOs (including Twitter, Inc.). The paper tracts the origins of the social media companies, their IPO decisions as well as their flotation and aftermarket performance. The analysis leads to conclusions and recommendations relating to future social media IPO scenarios (with particular emphasis on prerequisites of successful IPO management with regard to social media initiatives). Given the novelty and limited record of most social media public flotations, the paper represents a pioneering research effort aimed at explaining the utility of the IPO route for the global social media industry.","PeriodicalId":414983,"journal":{"name":"IRPN: Innovation & Finance (Topic)","volume":"31 2","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2014-06-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121010416","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
We examine how information processing cost affects investors’ acquisition of firm-specific information using a natural experiment resulting from a recent mandate that US firms be required to adopt the eXtensible Business Reporting Language (XBRL) when submitting filings to the SEC. XBRL filings make financial data standardized, tagged, and machine-readable. We find that XBRL adoption reduces firms’ stock return synchronicity. The reduction in synchronicity mainly applies to filings under the mandatory program as opposed to the voluntary program. Further, such an effect is more pronounced for opaque and complex firms. Finally, we find that XBRL adoption also reduces price delay.
{"title":"Does Information Processing Cost Affect Firm-Specific Information Acquisition? - Evidence from XBRL Adoption","authors":"Yi Dong, Oliver Zhen Li, Yupeng Lin, Chenkai Ni","doi":"10.2139/ssrn.2198135","DOIUrl":"https://doi.org/10.2139/ssrn.2198135","url":null,"abstract":"We examine how information processing cost affects investors’ acquisition of firm-specific information using a natural experiment resulting from a recent mandate that US firms be required to adopt the eXtensible Business Reporting Language (XBRL) when submitting filings to the SEC. XBRL filings make financial data standardized, tagged, and machine-readable. We find that XBRL adoption reduces firms’ stock return synchronicity. The reduction in synchronicity mainly applies to filings under the mandatory program as opposed to the voluntary program. Further, such an effect is more pronounced for opaque and complex firms. Finally, we find that XBRL adoption also reduces price delay.","PeriodicalId":414983,"journal":{"name":"IRPN: Innovation & Finance (Topic)","volume":"29 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2014-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126110775","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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