What question did this study set out to answer?

This research investigates whether SEC-mandated replacement cost disclosures affect transaction volumes of common stock shares.

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March 18, 2026

The Disclosure of Replacement Cost Accounting Data and Its Effect on Transaction Volumes.

Key Points

This research investigates whether SEC-mandated replacement cost disclosures affect transaction volumes of common stock shares.
Conducted empirical investigation of transaction volumes before and after ASR 190 disclosures.
Employed standard t testing procedure to analyze weekly transaction volumes.
Examined the relevance of replacement cost data to stock portfolio revisions.
No evidence found that replacement cost disclosures influenced transaction volumes.
Implication that disclosed data lacked significance to investors' decision-making.

Abstract

Abstract ABSTRACT: This study reports an empirical investigation of whether the SEC-mandated replacement cost disclosures, as set forth in ASR 190, had any effect on weekly transaction volumes of common stock shares. Using the standard t testing procedure, no evidence of the volume effect being investigated was found. This result appears to imply that the replacement cost accounting data made public under ASR 190 did not contain information important to investors as asserted by the SEC, if the revision of common stock portfolio holdings is a criterion.

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