The Market Pricing of Information Risk: From the Perspective of the Generating and Utilizing of Information
Read full paper at: http://www.scirp.org/journal/PaperInformation.aspx?PaperID=52280#.VI-LtsnQrzE Author(s) Xindong Zhang , Xin Li Affiliation(s) School of Economics and Management, Shanxi University, Taiyuan, China . ABSTRACT Generating and utilizing are the two sources of the information risk, reflecting the quality of financial reporting and investors’ information interpreting ability respectively. Using accrual quality to represent the financial reporting quality and the earnings transparency to represent investors’ information interpreting ability, we examine the correlation among them. By combining the generating and utilizing steps of information, we construct a two-dimensional information ris...