To summarize, the robustness check performed in this section increases confidence in the
conclusion that separate financial statements convey value-relevant information to investors and that
reporting under IFRS does not have incremental information content beyond domestic GAAP.
Moreover, performing the product model improves the fit of the regression and allows some
inferences, which would not have been possible had the analysis been confined to the traditional linear
model. In particular, the product model shows nonlinearities in the relation between price and
consolidated data, suggesting greater noise (i.e. measurement errors) in consolidated financial
statements which investors correct when pricing the firm.