Brought to you by the Accounting Department of McCombs
Visiting from the Sloan School at MIT
When: Friday November 11th 2:00-3:30PM
Where: GSB 5.153
Speaking as part of the Accounting Research Colloquium, he will present his paper :
- "The Relation between Reporting Quality and Financing and Investment: Evidence from Shocks to Financing Capacity"
ABSTRACT:We use changes in the value of a firm’s real estate assets as an exogenous shock to a firm’s financing capacity to examine (i) the relation between reporting quality and financing and investment conditional on this shock, and (ii) firms’ disclosure responses to the shock. We find that financing and investment by firms with higher reporting quality is less affected by changes in real estate values than are financing and investment by firms with lower reporting quality. Further, firms increase reporting quality in response to decreases in external financing capacity. Our findings contribute to the literature on reporting quality and investment and on the determinants of disclosure choices.
Rodrigo Verdi has broad interest in capital markets research in accounting and finance. His past research investigates the economic consequences of financial reporting quality to investment efficiency and to the cost of capital. He has also studied the interaction between accounting information, voluntary disclosure and market efficiency. Overall, Verdi's research provides insights on the role of accounting information in corporate finance decisions and in the capital markets behavior.