THE RELEVANCE OF ACCOUNTING INFORMATION IN BOND MARKET
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Date
2011-04-27
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De la Salle Lipa Philipines + Universitas Widyatama Bandung
Abstract
Previous empirical research on accounting information has focused on stock market, and has not examined for bond
market. The accounting information should differ for stockholders and bondholders. This paper investigates the role of
accounting quality in improving bond liquidity. High accounting quality not only reduces information asymmetry, but
also decreases overall uncertainty in the market, thereby improving liquidity. The objective of this study is to examine
the role of accounting quality in the bond market, and the results highlight the importance of information quality in
improving liquidity. I use earnings quality as accounting quality’s measurement. The result showed that accounting
information had influence in bond market
Keywords: Accounting information, accounting quality, bond liquidity
Description
Keywords
Accounting information, accounting quality, bond liquidity