is supported by exceptional individuals, foundations, corporations, the Government of Canada and the provincial governments of Alberta, British Columbia and Ontario.
Acknowledgements: Fraser Mustard conceived and launched the CIFAR Program in Population Health from which this book (and much else) emerged.
University Killam professor (Economics), University of British Columbia (UBC), Vancouver, BC; founding Director of the CIFAR Program in Population Health and an Institute Fellow of the Canadian Institute for Advanced Research
5) The construction of the index is therefore similar to that of the CIFAR index.
However, it is important to realise that the bank-level indexes we construct share some limitations with the CIFAR index.
These authors develop an interesting extension of the CIFAR index that captures other dimensions of disclosure, such as analyst following.
The study was a collaboration that included CIFAR
Senior Fellows Alessandro Forte (Universite du Quebec a Montreal) and Jerry Mitrovica (Harvard), and a former CIFAR
-supported post-doctoral fellow Rob Moucha (Syracuse).
This is a significant issue for interpreting results on the basis of the CIFAR index (described above), which is commonly used to measure the "quality" of accounting information within a country.
Using the CIFAR index as a measure of financial development, Rajan and Zingales document a significant positive coefficient on the interaction between industry-level demand for external financing and the country-level CIFAR index.
Using a similar design, Carlin and Mayer (2000) find that the growth in industry GDP and the growth in R&D spending as a share of value-added are disproportionately higher in industries with a high demand for external equity financing in countries with a large CIFAR index.
Although the paper's main result is that this indicator of financial development is negatively related to the estimated measure of capital market imperfection, it is interesting to note that the CIFAR index loads negatively over and above the main financial development indicator, while separate measures of the efficiency of the legal system, corruption, and risk of expropriation do not.
We note two final studies that have exploited the CIFAR index.