The Effect of New Information Technologies on Asset Pricing Anomalies

David Hirshleifer and Liang Ma

No 32767, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We test and compare the effects of introduction of two new financial information technologies, EDGAR and XBRL, on well-known asset pricing anomalies often attributed to mispricing. EDGAR facilitates easier access to public accounting information about public firms; XBRL reduces the cost of processing such information. Using stacked difference-in-differences regressions, we find that both EDGAR and XBRL reduce mispricing for accounting-based anomalies but not for non-accounting-based anomalies. The economic magnitudes of the effects on accounting-based anomalies are similar for EDGAR and XBRL. These results suggest that both easier access to and less costly processing of public information enhance market efficiency.

JEL-codes: G12 G14 G4 G40 M40 (search for similar items in EconPapers)
Date: 2024-08
New Economics Papers: this item is included in nep-acc, nep-fdg, nep-fmk and nep-ict
Note: AP
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.nber.org/papers/w32767.pdf (application/pdf)
Access to the full text is generally limited to series subscribers, however if the top level domain of the client browser is in a developing country or transition economy free access is provided. More information about subscriptions and free access is available at http://www.nber.org/wwphelp.html. Free access is also available to older working papers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:32767

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w32767
The price is Paper copy available by mail.

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().