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Author: Stefanie Ceustermans
Publisher:
ISBN:
Category :
Languages : en
Pages : 25
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Book Description
The purpose of this paper is to provide generalizable evidence on the determinants influencing the voluntary disclosure of sales in the abbreviated financial statements of small private companies. We estimate our model separately for micro-entities and non-micro small companies. The existing literature examining voluntary disclosure behavior does so mainly in a context of capital markets, leaving voluntary disclosure incentives of small and private companies largely unexplored. As we observe that many small private companies in Belgium disclose more financial information than required, understanding the benefits associated with higher disclosure levels is important. We empirically show on a sample of 243,633 small companies, which includes 163,686 micro-entities, that small private companies have incentives to disclose financially sensitive information on a voluntary basis.
Author: Stefanie Ceustermans
Publisher:
ISBN:
Category :
Languages : en
Pages : 25
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Book Description
The purpose of this paper is to provide generalizable evidence on the determinants influencing the voluntary disclosure of sales in the abbreviated financial statements of small private companies. We estimate our model separately for micro-entities and non-micro small companies. The existing literature examining voluntary disclosure behavior does so mainly in a context of capital markets, leaving voluntary disclosure incentives of small and private companies largely unexplored. As we observe that many small private companies in Belgium disclose more financial information than required, understanding the benefits associated with higher disclosure levels is important. We empirically show on a sample of 243,633 small companies, which includes 163,686 micro-entities, that small private companies have incentives to disclose financially sensitive information on a voluntary basis.
Author: Stefanie Ceustermans
Publisher:
ISBN:
Category :
Languages : en
Pages : 26
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Book Description
Small companies are the backbone of the economy in many countries. In Europe, for example, small companies represent more than 90% of all companies. Despite the fact that these companies represent such an important portion of the economy, few studies have been examining voluntary disclosure decisions by this type of companies. Since small companies possess certain unique characteristics as compared with their larger counterparts, the general applicability of past voluntary disclosure studies to small companies is questionable. Drawing on agency, signalling and proprietary cost theory, this study investigates whether ownership, competition and accountant factors influence the decision to disclose financially sensitive information on a voluntary basis. Our results (using an e-mail questionnaire, n=1,102) show that nearly 40% of the responding companies are not even aware of their disclosure behaviour. For the companies that are aware of their disclosure behaviour, the logistic regression analysis shows that the ownership structure of the company is the most important determinant of voluntary disclosure. This is followed by perceived competition and the type of accounting software.
Author: Stefanie Ceustermans
Publisher:
ISBN:
Category :
Languages : en
Pages : 19
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Book Description
We examine the association between voluntary financial disclosure and the amount of obtained trade credit in a sample of small and young private Belgian companies. We argue that voluntary disclosure can help small private companies in mitigating information asymmetries that arise between the company and their suppliers. We focus on young companies because information asymmetries, and therefore finance constraints, are especially important in the early life of a company. We exploit a large and detailed database with information of more than 90,000 small private companies over the period 2010 till 2012. Our results indicate that voluntary financial disclosure by small and private companies is positively related to the level of trade credit, which is in line with the traditional view that asymmetric or incomplete information restricts access to external funds. In addition, we find that trade credit is negatively related to age, profitability, solvency, the level of total bank loans and tangible fixed assets and positively related to growth, the level of inventories and accounts receivable.
Author: Hazim Qassim Alrawashdeh
Publisher:
ISBN:
Category : Disclosure in accounting
Languages : en
Pages : 48
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Author: Patricia van de Wiele
Publisher:
ISBN:
Category :
Languages : en
Pages : 38
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Author: Kai Wai Hui
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ISBN:
Category :
Languages : en
Pages :
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Book Description
This study examines the importance of sales executives in firms' disclosure policies. Our findings show that the fixed effects of sales executives are significant in explaining the properties of both revenue-related financial and non-financial disclosures after we control for economic determinants and the effects of CEOs and CFOs. We also find that sales executives are more important than those of CEOs and CFOs in deciding revenue forecasts, and when firms have higher prosperity costs and operating complexity. Our evidence is consistent when exogenous executive turnovers are applied in the test. Finally, our findings are robust after we control for the endogeneity of whether firms' sales executives are in top-five management teams. In summary, our study contributes to the literature by documenting sales executives as an important determinant of disclosure decisions.
Author: Patricia van de Wiele
Publisher:
ISBN:
Category :
Languages : en
Pages : 210
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Author: Patricia van de Wiele
Publisher:
ISBN:
Category :
Languages : en
Pages : 29
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Author: Nermeen F. Shehata
Publisher:
ISBN:
Category :
Languages : en
Pages : 9
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Book Description
This paper aims to discuss the theoretical aspects of voluntary disclosure in terms of its role in the economy, the theories that are usually used through the literature to explain voluntary disclosure, its determinants, and the common sources of voluntary information disclosure. Theories related to voluntary disclosure that are commonly used through the literature include agency theory, signalling theory, capital need theory, and legitimacy theory. Determinants of voluntary disclosure fall into motivations and constraints. Finally, different sources of voluntary information disclosure are addressed clarifying why the annual reports are the most preferred source of information. The paper provides a snapshot to different parties interested in voluntary disclosure including academics and practitioners. Academics would use this paper while designing empirical voluntary disclosure research. Practitioners could probably better understand companies' behaviours towards increased or decreased voluntary information disclosure.
Author: Annalisa Prencipe
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
This paper aims to identify new determinants of the extent of voluntary segment disclosure by using the theoretical framework of the Proprietary Costs Theory, which states that companies limit voluntary disclosure because of proprietary costs, such as preparation and competitive costs. On the basis of the existing literature on this theory and on segment reporting, three hypotheses are theoretically derived, each correlating the level of segment disclosure to a new determinant, specifically the correspondence between the segments and legally identifiable subgroups of companies, the growth rate and the listing status age. The paper also provides further evidence to test the impact of some "traditional" determinants, introduced in the study as control variables. The hypotheses formulated are empirically verified. The analysis is carried out with reference to Italy, because of its limited legal and professional provisions on the topic. For the empirical test, a sample of 64 Italian listed companies is selected and a multiple regression model is used. Results show that, except for the growth rate, the two other new determinants are significantly related to the extent of segment disclosure. These findings confirm that proprietary costs are particularly relevant and limit the incentive for companies to provide segment information to the market.
