Volume 30, Issue 1, 2021
DOI: 10.24205/03276716.2020.2083
The Impact of Business Strategy on Information Environment
Abstract
This paper investigates the relationship between business strategy and information environment and the moderating effect of business strategy and information environment in different accounting Conservatism and accounting comparability contexts. We find that firms with higher strategy scores may have a better information environment. We also find that the investors can choose the firm to invest in based on their business strategy. Accounting information quality affects the information environment, especially accounting conservatism and accounting comparability.
Keywords
Business strategy; information environment; information asymmetry; accounting conservatism; accounting comparability