Economic consequences of SFAS No. 33 - an insider-trading perspective

Article Abstract:

Statement of Financial Accounting Standards (SFAS) No 33 requires firms to disclose inflation-adjusted information. A study was conducted to examine the effect of accounting disclosures for information on the trading behavior of corporate insiders. It tested the hypothesis that net insider selling increased in organizations whose constant-dollar income intially disclosed under SFAS 33 was lower than their historical-cost income. Data for the study came from three sources: constant-dollar information was obtained from Value Line Data Bank, historical-cost data were provided by COMPUSTAT, and insider trading information was drawn from the SEC's Ownership Reporting System. Results of the study confirmed the hypothesis.

Insider trading in securities, Insider trading (Securities), Inflation accounting

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Market perceptions of reserve disclosures under SFAS No. 69

Article Abstract:

Statement of Financial Accounting Standard (SFAS) No 69 issued by the Financial Accounting Standards Board requires reserve disclosures from oil and gas companies. The value-relevance of this accounting standard was examined using data obtained from a sample of 86 oil and gas companies with SFAS No 69 disclosures from 1984 to 1987. The study investigated the relative informativeness of the three reserve quantity disclosures, those of production, proved reserves and proved developed reserves. Results suggested that when production information is available, proved reserves and proved developed reserves do not generally provide additional relevant information to market participants.

Crude petroleum and natural gas, Accounting and auditing, Petroleum industry, Petroleum, Petroleum reserves

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The value relevance of financial statement recognition vs. disclosure: evidence from SFAS no. 106

Article Abstract:

Research presented concerns the differences in market reaction to disclosed financial statement data versus data recognized in the body of the statement. Topics addressed include the Statement of Financial Accounting Standards No. 106, Employers' Accounting for Postretirement Benefits Other than Pensions, and the market's weighting of liability disclosures.

United States, Statistical Data Included, Management, Financial statements

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