PhD Defence: Pooyan Ghazizadeh
In his dissertation ‘Empirical Studies on the Role of Financial Information in Asset and Capital Markets’ Pooyan Ghazizadeh investigates several aspects of the role financial accounting information plays in asset and capital markets.
Pooyan Ghazizadeh defended his dissertation in the Senate Hall at Erasmus University Rotterdam on Friday, 11 January 2019 at 13:30. His supervisors were Prof. Abe de Jong (RSM) and Prof. Erik Peek (RSM). Other members of the Doctoral Committee are Prof. Erik Roelofsen (RSM), Prof. Peter Roosenboom (RSM) and Prof. David Veenman (University of Amsterdam).
Pouyan Ghazizadeh was born in Tehran (Iran) on September 16th 1981. He holds an MSc degree in Business Administration from the Rotterdam School of Management, Erasmus University. In 2009 he joined the Finance department of this school, and switched to the Accounting department in 2013. He is currently an assistant professor in accounting at the University of Amsterdam, Amsterdam Business School, where he teaches Financial Accounting Research. His research interests lie at the intersection of various aspects of accounting information and the efficiency of capital allocation.
A primary function of capital markets is to efficiently allocate capital, which entails the flow of capital to investments with the highest returns commensurate with their risk (Tobin, 1984). The market of corporate assets fulfills a similar function, where ideally productive assets are transferred to those most equipped to manage them (Manne, 1965). A large body of scientific inquiry identifies informational frictions as impediments to the efficient functioning of these markets. To mitigate these adverse effects, firms provide financial information to parties external to the firm. For the most part, this information is generated by the firms’ accounting function and its presentation and disclosure are guided by accounting standards. The studies comprising this dissertation empirically investigate several aspects of the role financial accounting information plays in asset and capital markets.
Chapter 2 investigates the voluntary provision of information in the market of corporate assets sales and finds evidence which suggests that these disclosures are used to signal the turnaround of poor prior performance and financial distress. Chapter 3 investigates the effect of changes in accounting standards (i.e., IFRS) on the asymmetric distribution of information amongst capital market participants. The results indicate that IFRS adoption in cross-listed firm’s domestic market improves the liquidity of ADRs, in line with the reduction of the information disadvantage of investors trading on U.S. exchanges. Finally, chapter 4 finds that a commitment to providing conservative accounting information disciplines the allocation of capital by managers when state legislation increases managerial discretion.
Photos: Chris Gorzeman / Capital Images