Availability and Accuracy of Accounting and Financial Data in Emerging Markets.

As investor and researcher interest in emerging markets increases, the question of the availability and reliability of financial information pertinent to these markets becomes more and more important. This paper examines the availability and quality of accounting information on Malaysian firms contained in three different, widely available databases: Disclosure, Infostat and PACAP. An analysis of the firm coverage and transcription policies of these databases reveals systematic differences that could give rise to a "database effect" on research findings. The paper identifies these differences and demonstrates, where possible, ways to adjust for them.