Economics of Accounting: Volume I: Information in Markets (Springer Series in Accounting Scholarship)

**Economics of Accounting: Information in Markets** examines the fundamentals of a variety of economic analyses of the decision-facilitating and decision-influencing roles of information that are pertinent to the study of the economic impact of accounting. While much of information economic analysis makes no explicit reference to accounting, many generic results apply to accounting reports. Furthermore, the impact of accounting reports depends on the other information received by the economy's participants. Hence, it is essential that accounting researchers have a broad understanding of the impact of publicly reported information within settings in which there are multiple sources of public and private information. The focus in this volume is on the decision-facilitating role of information, with emphasis on the impact of public and private information on the equilibria and investor welfare in capital and product markets. Front Matter....Pages i-xx Introduction to Information in Markets....Pages 1-26 Front Matter....Pages 27-27 Single Person Decision Making under Uncertainty....Pages 29-70 Decision-Facilitating Information....Pages 71-109 Risk Sharing, Congruent Preferences, and Information in Partnerships....Pages 111-140 Front Matter....Pages 141-141 Arbitrage and Risk Sharing in Single-Period Markets....Pages 143-183 Arbitrage and Risk Sharing in Multi-Period Markets....Pages 185-222 Public Information in Multi-Period Markets....Pages 223-252 Production Choice in Efficient Markets....Pages 253-275 Relation between Market Values and Future Accounting Numbers....Pages 277-313 Relation between Market Values and Contemporaneous Accounting Numbers....Pages 315-363 Front Matter....Pages 365-365 Impact of Private Investor Information in Equity Markets....Pages 367-418 Strategic Use of Private Investor Information in Equity Markets....Pages 419-444 Front Matter....Pages 445-445 Disclosure of Private Information by an Undiversified Owner....Pages 447-500 Disclosure of Private Information by Diversified Owners....Pages 501-541 Disclosure of Private Information in Product Markets....Pages 543-579 Back Matter....Pages 581-593 Economics Of Accounting: Volume I - Information In Markets Is Divided Into Four Parts. In Part A, The Authors Set The Stage In Terms Of Representation Of Uncertainty, Preferences, Decisions, And Information In A Single Decision Maker Setting. The Important Concept Of Risk Sharing Is Also Introduced In A Partnership Setting. The Concepts Developed In Part A Are Fundamental To The Analyses Of Information In Markets In The First Volume And In The Analyses Of Performance Evaluation In The Second Volume. Part B Extends The Analysis To A Competitive Market Setting In Which All Information Is Public, And Explicitly Considers Accounting Representations Of Information Used In Valuation. Part C Considers Settings In Which Investors May Acquire Private Information Prior To Or Concurrent With Public Reports. Finally, Part D Considers Settings In Which Managers (or Owners) Of Firms Have Private Information That They Can Publicly Disclose To The Capital And Product Markets.--jacket. V. 1. Information In Markets -- V. 2. Performance Evaluation. Peter O. Christensen, Gerald A. Feltham. Includes Bibliographical References And Index. This is the softcover version of a title that was released in 2002 and has sold more than 500 copies since then world wide. Examines the fundamentals of the decision-facilitating and decision-influencing role of information in accounting. Emphasises the impact of public and private information on equilibria and investor welfare in capital and product markets. In their book on cost determination, Demski and Feltham (1977) characterize accounting as playing both decision-facilitating and decision-influencing roles within organizations.