In 1908, the American Sugar Refining Company (ASR) reversed its long-held policy of secrecy as to its financial condition and performance. Prior work, applying contemporary capital market methods to ASR security price data of that period, has suggested a value to ASR shareholders of this policy reversal. This paper examines the historical record of that time and presents additional evidence on this matter, particularly in terms of identifying potentially confounding events occurring during the period under study. The results of this analysis suggest a difficulty in attributing observed abnormal returns to ASR's secrecy policy reversal on the basis of the results obtained from applying capital markets methods. This analysis is useful for scholars interested in applying modern capital market methods to historical data. It highlights the significance of the possible effects of contemporaneous historical events, focuses attention on the importance of a deep understanding of the historical period studied, and suggests a value in combining historical and empirical-markets methods to gain a richer understanding of the events and conditions in the time period under study.
Skip Nav Destination
Article navigation
1 December 1997
Research Article|
December 01 1997
THE USE OF HISTORICAL DATA IN ACCOUNTING RESEARCH: THE CASE OF THE AMERICAN SUGAR REFINING COMPANY Available to Purchase
Robert Bricker;
Robert Bricker
CASE WESTERN RESERVE UNIVERSITY
Search for other works by this author on:
Kevin Brown
Kevin Brown
CASE WESTERN RESERVE UNIVERSITY
Search for other works by this author on:
Received:
October 01 1995
Revision Received:
February 01 1997
Accepted:
March 01 1997
Online ISSN: 2327-4468
Print ISSN: 0148-4184
© 1997 American Accounting Association
1997
Accounting Historians Journal (1997) 24 (2): 1–24.
Citation
Robert Bricker, Kevin Brown; THE USE OF HISTORICAL DATA IN ACCOUNTING RESEARCH: THE CASE OF THE AMERICAN SUGAR REFINING COMPANY. Accounting Historians Journal 1 December 1997; 24 (2): 1–24. https://doi.org/10.2308/0148-4184.24.2.1
Download citation file:
Pay-Per-View Access
$25.00