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Papers by Nattavut Suwanyangyuan

Research paper thumbnail of Top Executive Gender Diversity and Financial Reporting Quality

Research paper thumbnail of Disclosure Quantity and the Efficiency of Price Discovery: Evidence from the Toronto Stock Exchange

Social Science Research Network, Oct 30, 2015

Purpose - We investigate the effect of the information disclosure quantity on the pricing efficie... more Purpose - We investigate the effect of the information disclosure quantity on the pricing efficiency of stocks. Design/methodology/approach - Using a sample of large and actively traded Canadian companies listed on the Toronto Stock Exchange, we utilize annual reports filed on SEDAR between 2003 and 2013 to estimate the amount of publicly available information and find that the length and size of annual reports are important determinants of short-horizon return predictability from historical order flows, which is an inverse indicator of market efficiency. Findings - Our results show that longer and larger annual reports are associated with reduced information asymmetry, lower cost of immediacy, higher trading activity, and an overall improvement in the efficiency of price discovery. The results are robust to the inclusion of controls for various determinants of short-horizon return predictability, such as trading costs, volatility, informational effects, and other firm-specific characteristics. Research limitations/implications - Collectively, our findings provide empirical support for the benefits of detailed corporate disclosure in Canada. Originality/value - We are the first study to utilize the short-horizon return predictability approach to evaluate the efficiency of price discovery in relation to the amount of information disclosure.

Research paper thumbnail of sj-pdf-1-jaf-10.1177_0148558X211062430 – Supplemental material for Auditor Choice and the Informativeness of 10-K Reports

Supplemental material, sj-pdf-1-jaf-10.1177_0148558X211062430 for Auditor Choice and the Informat... more Supplemental material, sj-pdf-1-jaf-10.1177_0148558X211062430 for Auditor Choice and the Informativeness of 10-K Reports by Karel Hrazdil, Dan A. Simunic and Nattavut Suwanyangyuan in Journal of Accounting, Auditing & Finance

Research paper thumbnail of CEO happiness and forecasting

Research paper thumbnail of Auditor Choice and the Informativeness of 10-K Reports

Journal of Accounting, Auditing & Finance

This study provides new evidence on the influential role of external auditors in enhancing the in... more This study provides new evidence on the influential role of external auditors in enhancing the informativeness of form 10-K annual reports to shareholders. Specifically, we find that the client’s choice of a Big 4 auditor (PwC, EY, KPMG, and Deloitte) versus a non-Big 4 auditor contributes to cross-sectional variations in 10-K disclosure volume. We also document that the benefit of enhanced disclosures provided by Big 4 auditors is more pronounced for audit clients with poorer accrual quality and those with higher information asymmetry. Furthermore, we introduce the portion of 10-K length unexplained by operating complexity and observable client characteristics as a new proxy for audit firm effort. Specifically, we find that abnormally long disclosures are associated with higher audit fees and longer audit report lag, which implies that an incremental level of audit effort can be inferred from the discretionary component of 10-K disclosures. As audit effort is costly, a greater volu...

Research paper thumbnail of Essays on auditor competencies

Research paper thumbnail of Got Information? The Efficiency of Price Discovery of Quantitative Corporate Disclosures

Using a comprehensive sample of actively traded US companies, we analyze how the quantity of info... more Using a comprehensive sample of actively traded US companies, we analyze how the quantity of information in corporate disclosures affects the efficiency with which investors incorporate newly arriving information into stock prices. Specifically, we consider both numerical and textual levels of detail provided in 10-K disclosures: (1) disaggregation (numerical) quantity (DQ) that captures the ‘fineness’ of accounting line items in 10-K filings and (2) textual quantity (TQ) that captures the amount of ‘soft’ or narrative information in annual reports, and document that both DQ and TQ are associated with reduced information asymmetry, lower cost of immediacy, higher trading activity, and an overall improvement in the efficiency of information price discovery. Collectively, our results provide empirical support for the benefits of detailed corporate disclosure, whether numerical or textual.

Research paper thumbnail of Are the Big 4 audit firms homogeneous? Further evidence from audit pricing

International Journal of Auditing

We provide new evidence on audit pricing differences within the Big 4 audit firms in the U.S. mar... more We provide new evidence on audit pricing differences within the Big 4 audit firms in the U.S. market. Specifically, we show that PricewaterhouseCoopers (PwC) consistently earns above-average audit fee premiums relative to the other Big 4 firms. The industry expertise research stream argues that an audit firm with greater competency will be able to differentiate itself from its competitors in terms of within-industry market share and charge an audit fee premium for its services. We find that PwC has maintained its leadership position as the market share leader across most industries in the U.S. market. More important, we also find that the evidence of an “industry specialist” audit fee premium is consistently observed for the group of PwC specialists, but not for the group of other (non-PwC) specialists. Thus, the existing literature appears to have confounded a generalized PwC fee premium (as was first observed by Simunic [1980]) with an industry specialist fee premium in U.S. audit markets.

Research paper thumbnail of Does the large amount of information in corporate disclosures hinder or enhance price discovery in the capital market?

Journal of Contemporary Accounting & Economics

Research paper thumbnail of Are the Big 4 Firms Homogeneous?: Further Evidence From Audit Pricing

Research paper thumbnail of Disclosure quantity and the efficiency of price discovery

Review of Accounting and Finance, 2016

Purpose The purpose of this paper is to investigate the effect of the information disclosure quan... more Purpose The purpose of this paper is to investigate the effect of the information disclosure quantity on the pricing efficiency of stocks. Design/methodology/approach Using a sample of large and actively traded Canadian companies listed on the Toronto Stock Exchange, the authors utilize annual reports filed on system for electronic document analysis and retrieval (SEDAR) between 2003 and 2013 to estimate the amount of publicly available information and find that the length and size of annual reports are important determinants of short-horizon return predictability from historical order flows, which is an inverse indicator of market efficiency. Findings The results show that longer and larger annual reports are associated with reduced information asymmetry, lower cost of immediacy, higher trading activity, and an overall improvement in the efficiency of price discovery. The results are robust to the inclusion of controls for various determinants of short-horizon return predictability...

Research paper thumbnail of Top Executive Gender Diversity and Financial Reporting Quality

Research paper thumbnail of Disclosure Quantity and the Efficiency of Price Discovery: Evidence from the Toronto Stock Exchange

Social Science Research Network, Oct 30, 2015

Purpose - We investigate the effect of the information disclosure quantity on the pricing efficie... more Purpose - We investigate the effect of the information disclosure quantity on the pricing efficiency of stocks. Design/methodology/approach - Using a sample of large and actively traded Canadian companies listed on the Toronto Stock Exchange, we utilize annual reports filed on SEDAR between 2003 and 2013 to estimate the amount of publicly available information and find that the length and size of annual reports are important determinants of short-horizon return predictability from historical order flows, which is an inverse indicator of market efficiency. Findings - Our results show that longer and larger annual reports are associated with reduced information asymmetry, lower cost of immediacy, higher trading activity, and an overall improvement in the efficiency of price discovery. The results are robust to the inclusion of controls for various determinants of short-horizon return predictability, such as trading costs, volatility, informational effects, and other firm-specific characteristics. Research limitations/implications - Collectively, our findings provide empirical support for the benefits of detailed corporate disclosure in Canada. Originality/value - We are the first study to utilize the short-horizon return predictability approach to evaluate the efficiency of price discovery in relation to the amount of information disclosure.

Research paper thumbnail of sj-pdf-1-jaf-10.1177_0148558X211062430 – Supplemental material for Auditor Choice and the Informativeness of 10-K Reports

Supplemental material, sj-pdf-1-jaf-10.1177_0148558X211062430 for Auditor Choice and the Informat... more Supplemental material, sj-pdf-1-jaf-10.1177_0148558X211062430 for Auditor Choice and the Informativeness of 10-K Reports by Karel Hrazdil, Dan A. Simunic and Nattavut Suwanyangyuan in Journal of Accounting, Auditing & Finance

Research paper thumbnail of CEO happiness and forecasting

Research paper thumbnail of Auditor Choice and the Informativeness of 10-K Reports

Journal of Accounting, Auditing & Finance

This study provides new evidence on the influential role of external auditors in enhancing the in... more This study provides new evidence on the influential role of external auditors in enhancing the informativeness of form 10-K annual reports to shareholders. Specifically, we find that the client’s choice of a Big 4 auditor (PwC, EY, KPMG, and Deloitte) versus a non-Big 4 auditor contributes to cross-sectional variations in 10-K disclosure volume. We also document that the benefit of enhanced disclosures provided by Big 4 auditors is more pronounced for audit clients with poorer accrual quality and those with higher information asymmetry. Furthermore, we introduce the portion of 10-K length unexplained by operating complexity and observable client characteristics as a new proxy for audit firm effort. Specifically, we find that abnormally long disclosures are associated with higher audit fees and longer audit report lag, which implies that an incremental level of audit effort can be inferred from the discretionary component of 10-K disclosures. As audit effort is costly, a greater volu...

Research paper thumbnail of Essays on auditor competencies

Research paper thumbnail of Got Information? The Efficiency of Price Discovery of Quantitative Corporate Disclosures

Using a comprehensive sample of actively traded US companies, we analyze how the quantity of info... more Using a comprehensive sample of actively traded US companies, we analyze how the quantity of information in corporate disclosures affects the efficiency with which investors incorporate newly arriving information into stock prices. Specifically, we consider both numerical and textual levels of detail provided in 10-K disclosures: (1) disaggregation (numerical) quantity (DQ) that captures the ‘fineness’ of accounting line items in 10-K filings and (2) textual quantity (TQ) that captures the amount of ‘soft’ or narrative information in annual reports, and document that both DQ and TQ are associated with reduced information asymmetry, lower cost of immediacy, higher trading activity, and an overall improvement in the efficiency of information price discovery. Collectively, our results provide empirical support for the benefits of detailed corporate disclosure, whether numerical or textual.

Research paper thumbnail of Are the Big 4 audit firms homogeneous? Further evidence from audit pricing

International Journal of Auditing

We provide new evidence on audit pricing differences within the Big 4 audit firms in the U.S. mar... more We provide new evidence on audit pricing differences within the Big 4 audit firms in the U.S. market. Specifically, we show that PricewaterhouseCoopers (PwC) consistently earns above-average audit fee premiums relative to the other Big 4 firms. The industry expertise research stream argues that an audit firm with greater competency will be able to differentiate itself from its competitors in terms of within-industry market share and charge an audit fee premium for its services. We find that PwC has maintained its leadership position as the market share leader across most industries in the U.S. market. More important, we also find that the evidence of an “industry specialist” audit fee premium is consistently observed for the group of PwC specialists, but not for the group of other (non-PwC) specialists. Thus, the existing literature appears to have confounded a generalized PwC fee premium (as was first observed by Simunic [1980]) with an industry specialist fee premium in U.S. audit markets.

Research paper thumbnail of Does the large amount of information in corporate disclosures hinder or enhance price discovery in the capital market?

Journal of Contemporary Accounting & Economics

Research paper thumbnail of Are the Big 4 Firms Homogeneous?: Further Evidence From Audit Pricing

Research paper thumbnail of Disclosure quantity and the efficiency of price discovery

Review of Accounting and Finance, 2016

Purpose The purpose of this paper is to investigate the effect of the information disclosure quan... more Purpose The purpose of this paper is to investigate the effect of the information disclosure quantity on the pricing efficiency of stocks. Design/methodology/approach Using a sample of large and actively traded Canadian companies listed on the Toronto Stock Exchange, the authors utilize annual reports filed on system for electronic document analysis and retrieval (SEDAR) between 2003 and 2013 to estimate the amount of publicly available information and find that the length and size of annual reports are important determinants of short-horizon return predictability from historical order flows, which is an inverse indicator of market efficiency. Findings The results show that longer and larger annual reports are associated with reduced information asymmetry, lower cost of immediacy, higher trading activity, and an overall improvement in the efficiency of price discovery. The results are robust to the inclusion of controls for various determinants of short-horizon return predictability...