Relative Usefulness of Accounting Information

Substitutability of Accounting Information for Private Information by Banks

Abstract

　This paper highlights the importance of verifying the relative usefulness of accounting information, given the current expansion of corporate disclosure and the broadening scope of accounting analysis. I introduce empirical research treating banks’ private information as substitute information, demonstrating that accounting information can be substituted depending on circumstances in environments where competitive information exists. Based on these findings, I point out that verifying relative usefulness is indispensable for reaffirming the significance of accounting.