tailieunhanh - Accounting conservatism, market liquidity and informativeness of asset price: Implications on mark to market accounting

This paper theoretically examines the impact of conservatism on the asset price in an asset market allowing for strategic interactions among traders. Due to the trades coming from conservatism traders contain less informational content, the asset price is shown to be less informative in the presence of conservatism traders. In addition, this paper shows that the market liquidity increases as the proportion of conservatism traders increases. | Accounting conservatism, market liquidity and informativeness of asset price: Implications on mark to market accounting

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