Accounting - Articles

Tepperspectives is the heart of thought leadership for the Tepper School of Business at Carnegie Mellon University. Tepper school faculty and other experts share their research, innovations, and ideas for The Intelligent Future℠.

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Opinion

Is Entropy the New Key to Accounting?

Tepper School researchers introduce Accounting Classification Entropy, a novel measure derived from information theory that quantifies the structural information in corporate financial reports, which is proven to be significantly associated with stock returns, trading volumes, and financial analysts' resource allocation.