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Integrated Reporting Channels and Firm Value Determinants

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Integrated Reporting Channels and Firm Value Determinants

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Questions and Answers

How does liquidity impact firm value according to Fang, Noe, and Tice (2009)?

No impact

Negatively

Positively (correct)

Unpredictable

According to Khanna and Sonti (2004), how does liquidity influence the entry of informed investors into the market?

It stimulates the entry of informed investors (correct)

It confuses the informed investors

It reduces entry of informed investors

It has no effect on the entry of informed investors

How does high business uncertainty affect the relationship between liquidity and performance, as per Fang et al. (2009)?

Weakens the relationship

No impact on the relationship

Creates unpredictability in the relationship

Strengthens the relationship (correct)

What effect does higher Integrated Reporting Quality (IRQ) have on liquidity, based on the text?

Increases liquidity by stimulating additional trading Signup and view all the answers

How does disclosure quality impact firm value according to the text?

It reduces information asymmetry and increases firm value Signup and view all the answers

What can decrease liquidity, decrease share prices, and increase cost of capital according to the text?

Information asymmetry Signup and view all the answers

How are liquidity and cost of capital viewed in relation to integrated reporting?

They are part of the capital market channel Signup and view all the answers

What does a theoretical link between liquidity and disclosure quality suggest?

Improved disclosure quality reduces information asymmetry Signup and view all the answers

How is the percentile rank of IRQ, IRQ_R, calculated each year?

(firm rank - 1)/(number of firms + 1) Signup and view all the answers

In the study, why are the equations estimated separately for each component of IRQ?

To test for the relationship between components and firm value Signup and view all the answers

Why is corporate governance included as a control variable in equation (1)?

Based on its negative relationship with cost of capital and firm value Signup and view all the answers

What is the primary reason for using the change in IRQ_R to measure a firm's change in relative IRQ?

Due to the high correlation among IRQ components Signup and view all the answers