Incremental Value Of Information Research Articles

Can carbon emission trading scheme reshape audit reporting aggressiveness? Evidence from an incremental information perspective

Using a sample of listed Chinese companies between 2010 and 2019, this study examines the impact of the carbon emissions trading scheme (ETS) on audit reporting aggressiveness. We find that the ETS implementation reduces audit reporting aggressiveness. The mechanism tests indicate that the incremental carbon and environmental-related information provided by emission-regulated companies enhances auditors’ prudence, leading to informed judgments. Further analysis reveals that auditors with comparatively lower competency benefit more from the incremental information, and the ETS impact is more pronounced for firms with strong external monitoring and higher carbon risk, which indicates varied incremental information value for auditors' judgment.

Do ESG scores have incremental information value on the primary bond market?——evidence from China

ESG scores are essential information tools in the capital market, but prior study has not fully discussed the effect and internal mechanism of ESG scores on bond investors’ risk pricing in the primary market. The purpose of this study is to investigate the relationship between the ESG scores and risk premium of bond issuance based on the sample of Chinese listed corporations. We find that when ESG scores of the bond issuer are higher, the investors will require a lower risk premium. The result indicates that ESG scores already have positive information effect in Chinese primary bond market. Furthermore, we make mechanism and heterogeneity tests to prove that ESG scores can provide investors with incremental information, which is helpful for bond investors to identify risks and price effectively. Our study in the context of the emerging economy of China examines the incremental information value of ESG scores for bond investors, and provides evidence for the application of sustainable development concepts in global capital markets.

The diagnostic process from primary care to child and adolescent mental healthcare services: the incremental value of information conveyed through referral letters, screening questionnaires and structured multi-informant assessment.

A variety of information sources are used in the best-evidence diagnostic procedure in child and adolescent mental healthcare, including evaluation by referrers and structured assessment questionnaires for parents. However, the incremental value of these information sources is still poorly examined. To quantify the added and unique predictive value of referral letters, screening, multi-informant assessment and clinicians' remote evaluations in predicting mental health disorders. Routine medical record data on 1259 referred children and adolescents were retrospectively extracted. Their referral letters, responses to the Strengths and Difficulties Questionnaire (SDQ), results on closed-ended questions from the Development and Well-Being Assessment (DAWBA) and its clinician-rated version were linked to classifications made after face-to-face intake in psychiatry. Following multiple imputations of missing data, logistic regression analyses were performed with the above four nodes of assessment as predictors and the five childhood disorders common in mental healthcare (anxiety, depression, autism spectrum disorders, attention-deficit hyperactivity disorder, behavioural disorders) as outcomes. Likelihood ratio tests and diagnostic odds ratios were computed. Each assessment tool significantly predicted the classified outcome. Successive addition of the assessment instruments improved the prediction models, with the exception of behavioural disorder prediction by the clinician-rated DAWBA. With the exception of the SDQ for depressive and behavioural disorders, all instruments showed unique predictive value. Structured acquisition and integrated use of diverse sources of information supports evidence-based diagnosis in clinical practice. The clinical value of structured assessment at the primary-secondary care interface should now be quantified in prospective studies.

Measuring treatment outcome in patients with anxiety disorders: A comparison of the responsiveness of generic and disorder-specific instruments

BackgroundFor routine outcome monitoring, generic (i.e., broad-based) and disorder-specific instruments are used to monitor patient progress. While disorder-specific instruments may be more sensitive to therapeutic change, generic measures can be applied more broadly and allow for an assessment of therapeutic change, irrespective of a specific anxiety disorder. Our goal was to investigate whether disorder-specific instruments for anxiety disorders are a valuable (or even necessary) addition to generic instruments for an appropriate assessment of treatment outcome in groups of patients. MethodsData were collected from 2002 to 2013 from psychiatric outpatients in treatment for Social Phobia (SP; n = 834), Generalized Anxiety Disorder (GAD; n = 661), Panic Disorder (PD; n = 944), Obsessive-Compulsive Disorder (OCD; n = 460), and Posttraumatic Stress Disorder (PTSD; n = 691). Instruments used were the generic Brief Symptom Inventory (BSI), The Mood and Anxiety Symptoms Questionnaire (MASQ), and several disorder-specific instruments (e.g., Social Interaction Anxiety Scale, Social Phobia Scale, Panic Appraisal Inventory, etc.). Responsiveness (i.e., sensitivity to therapeutic change) was examined through correlational analyses, effect sizes (ES), and analysis of variance for repeated measures. ResultsThe MASQ appeared generally more responsive than the BSI, except for the BSI Anxiety subscale for PD. Disorder-specific measures equaled the MASQ and BSI in responsiveness. When statistically significant differences occurred, the ES was small. Discussion/conclusionsFor most anxiety disorder groups (i.e., SP, PD and OCD), the MASQ or BSI was equally suited as disorder-specific instruments to detect change at group level. Exceptions are GAD and PTSD. These findings suggest limited incremental information value of disorder-specific instruments over the MASQ and BSI for measuring change.

The Value of Consumer Data in Online Advertising

Abstract In this paper we propose a model where consumer personal data have multidimensional characteristics, and are used by platforms to offer ad slots with better targeting possibilities to a market of differentiated advertisers through real-time auctions. A platform controls the amount of information about consumers that it discloses to advertisers, thereby affecting the dispersion of advertisers’ valuations for the slot. We first show by way of simulations that the amount of consumer-specific information that is optimally revealed to advertisers increases with the degree of competition on the advertising market and decreases with the cost of information disclosure for a monopolistic platform, competing platforms or a welfare-maximizing platform, provided the advertising market is not highly concentrated. Second, we exhibit different properties between the welfare-maximizing situation and the imperfectly competitive market situations with respect to how the incremental value of information varies: there are decreasing social returns to consumers’ data, while private returns may be increasing or decreasing locally.

SFlt-1/PlGF ratio test for pre-eclampsia: an economic assessment for the UK.

ABSTRACTObjectivesTo assess the economic impact of introducing into clinical practice in the UK the soluble fms‐like tyrosine kinase (sFlt‐1) to placental growth factor (PlGF) ratio test for guiding the management of pre‐eclampsia.MethodsWe used an economic model estimating the incremental value of information, from a UK National Health Service payer's perspective, generated by the sFlt‐1/PlGF ratio test, compared with current diagnostic procedures, in guiding the management of women with suspected pre‐eclampsia. The economic model estimated costs associated with the diagnosis and management of pre‐eclampsia in pregnant women between 24 + 0 and 36 + 6 weeks' gestation, managed in either a ‘test’ scenario in which the sFlt‐1/PlGF test is used in addition to current diagnostic procedures, or a ‘no‐test’ scenario in which clinical decisions are based on current diagnostic procedures alone. Test characteristics and resource use were derived from PROGNOSIS, a non‐interventional study in women presenting with clinical suspicion of pre‐eclampsia. The main outcome measure from the economic model was the cost per patient per episode of care, from first suspicion of pre‐eclampsia to birth.ResultsIntroduction of the sFlt‐1/PlGF ratio test into clinical practice is expected to result in cost savings of £344 per patient compared with a no‐test scenario. Savings are generated primarily through an improvement in diagnostic accuracy and subsequent reduction in unnecessary hospitalization.ConclusionsIntroducing the sFlt‐1/PlGF ratio test into clinical practice in the UK was shown to be cost‐saving by reducing unnecessary hospitalization of women at low risk of developing pre‐eclampsia. In addition, the test ensures that those women at higher risk are identified and managed appropriately. © 2016 Authors. Ultrasound in Obstetrics & Gynecology published by John Wiley & Sons Ltd on behalf of International Society of Ultrasound in Obstetrics and Gynecology.

Does the XBRL Reporting Format Provide Incremental Information Value? A Study Using XBRL Disclosures During the Voluntary Filing Program

This study investigates whether the eXtensible Business Reporting Language (XBRL) reporting format provides incremental information value beyond the same 10K/10Q filings previously provided in HTML format. Using a sample from the XBRL Voluntary Filing Program, we document a significant increase in stock price variance on the day when voluntary XBRL reports are filed. We find market response is stronger when more content is filed on the same day. To evaluate relative information value, we decompose the quarterly return variance for three primary news announcements related to earnings including earnings announcement, HTML filing, and XBRL filing. We find XBRL filings have larger relative information value than HTML filings. Our results indicate that the XBRL reporting format provides incremental information content.

Distribution and Equitable Sharing of Value From Information Sharing Within Serial Supply Chains

This paper studies the incentive issues that arise when firms in a multilevel supply chain create value jointly by investing in information sharing. We consider three types of information sharing: (1) supply-chain-wide information sharing; (2) downstream information sharing; and (3) upstream information sharing. We showed that the value of information sharing is higher for the upstream firms than for downstream firms regardless of information sharing type. Furthermore, the value of information sharing for any firm is higher under downstream information sharing than upstream information sharing, and the incremental value of information sharing to a firm decreases when more downstream firms share information. Therefore, if there is a cost associated with information sharing, then upstream firms have an incentive to free ride on downstream firms' information sharing efforts. These results suggest that serious incentive misalignments may impede supply-chain-wide information sharing, even though it maximizes the value to the supply chain, and that a mechanism to distribute the overall surplus equitably may become essential. If a contract distributes the surplus according to each firm's incremental contribution to it, then firms that are in the middle levels of the supply chain receive a higher share than those that are in either end of the supply chain. That is, interestingly, neither the firm that possesses the information that is propagated throughout the supply chain by information sharing nor the most upstream firm realizes the highest value from information sharing obtains the maximum share of the surplus generated under such a contract.

Measuring the impact of international reporting standards on market performance of publicly traded companies

The decision whether to require publicly traded companies to adopt International Financial Reporting Standards (IFRS) remains in flux. In 2008, the US Securities and Exchange Commission proposed a roadmap leading to complete acceptance of IFRS in the US. With the potential replacement of US GAAP with IFRS in the near future, understanding the impact of IFRS on corporate financial reporting is more important than ever. This study examines two factors which are critical considerations in the decision to accept or not to accept IFRS in the US: How different is financial statement information derived under IFRS from information derived under US generally accepted accounting principles (GAAP); and how much incremental information value, if any, is provided by IFRS over US GAAP? The present study extends prior research by examining concurrently both differences and their impact on market performance. Findings of this study support the view that differences on financial statement results between IFRS and US GAAP are not significant, thus, supporting proponents of adoption of IFRS in the US, after which all US publicly traded companies would use IFRS and not US GAAP.

Measuring the Impact of International Financial Reporting Standards on Market Performance of Publicly Traded Companies

The decision whether to require publicly traded companies to adopt International Financial Reporting Standards (IFRS) remains in flux. In 2008, the US Securities and Exchange Commission proposed a roadmap leading to complete acceptance of IFRS in the US. With the potential replacement of US GAAP with IFRS in the near future, understanding the impact of IFRS on corporate financial reporting is more important than ever. This study examines two factors which are critical considerations in the decision to accept or not accept IFRS in the US: How different is financial statement information derived under IFRS from information derived under US generally accepted accounting principles (GAAP); and how much incremental information value, if any, is provided by IFRS over US GAAP. The present study extends prior research by examining concurrently both differences and their impact on market performance. Findings of this study support the view that differences on financial statement results between IFRS and US GAAP are not significant, thus, supporting proponents of adoption of IFRS in the US, after which all US publicly traded companies would use IFRS and not US GAAP.

Measuring the incremental information value of documents

The incremental searcher satisfaction model for Information Retrieval has been introduced to capture the incremental information value of documents. In this paper, from various cognitive perspectives, searcher requirements are derived in terms of the increment function. Different approaches for the construction of increment functions are identified, such as the individual and the collective approach. Translating the requirements to similarity functions leads to the so-called base similarity features and the monotonicity similarity features. We show that most concrete similarity functions in IR, such as Inclusion, Jaccard’s, Dice’s, and Cosine coefficient, and some other approaches to similarity functions, possess the base similarity features. The Inclusion coefficient also satisfies the monotonicity features.

Endogenous and exogenous determinants of interest rates

This paper jointly examines international overnight information and an extended set of domestic macro-economic announcements which may impact interest rates. The research is motivated by the possibility that domestic Australian interest rates may primarily be determined by international factors. This possibility has largely been ignored in previous research in Australia. A 3 year intra-day data set of 5 min observations is constructed from 90 day bank bill prices traded on the Sydney Futures Exchange. This data allows the application of appropriate statistical models to dissect and estimate the structural form of information flow. The results indicate that the strongest information impact for Australian interest rates is derived from exogenous information from US interest rates and movements in the overnight exchange rates. This result is consistent with integrated international markets and continuous information flow. The strongest endogenous information effect was derived from changes in the consumer price index with the current account deficit having a smaller impact. Statistics on the unemployment rate, participation rate and wages growth had no incremental information value.

Investor Response to Cash Flow Information

In this study the usefulness of cash flow data as required by the UK standard, FRS1, is evaluated and cash flow per share is investigated as a possible specification of cash flow data that may contain information value for security markets. Recent innovation in earnings response models are used to test the robustness of the results and provide further insights into the time series properties of cash flow numbers. The findings indicate that the disaggregation of cash flow as required under FRS1 contains information beyond aggregate cash flow but that the required disaggregation is not optimal from an information standpoint. There is little evidence of any incremental information value of cash flow per share over cash flow numbers.

Limits for the Precision and Value of Information from Dependent Sources

In many inferential and decision-making situations, information is obtained from a number of information sources, and the separate pieces of information are often not independent. This paper investigates the impact of dependence on the precision and value of information. The results indicate that positive dependence among information sources can have a serious detrimental effect on the precision and value of the information. Differences in precision between the dependent and independent cases can be remarkably large. With dependence, the incremental value of information can decrease very rapidly, and the limiting value of information as more sources are considered can be considerably less than the expected value of perfect information. The results of this paper have implications for the acquisition and use of information in decision-making problems.