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The Disclosure of Replacement Cost Accounting Data and Its Effect on Transaction Volumes.

Byung T. Ro

Assistant Professor of Accounting, Purdue University. 1

The Accounting Review 1981

Abstract ABSTRACT: This study reports an empirical investigation of whether the SEC-mandated replacement cost disclosures, as set forth in ASR 190, had any effect on weekly transaction volumes of common stock shares. Using the standard t testing procedure, no evidence of the volume effect being investigated was found. This result appears to imply that the replacement cost accounting data made public under ASR 190 did not contain information important to investors as asserted by the SEC, if the revision of common stock portfolio holdings is a criterion.

DOI
10.2308/tar-4481066
Volume
56 (1)
Pages
70-84
Language
en
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