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Author: Antonio Chirico
Publisher: LAP Lambert Academic Publishing
ISBN: 9783659442803
Category :
Languages : en
Pages : 172
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Book Description
The objective of our work is to examine the relationship between the level of forward-looking disclosure and firm characteristics (structured-related variables, performance-related variables, and market-related variables)for the period 2008-2010. The results show that firm size and audit firm size were significantly (in all the three years) with the level of forward-looking disclosure. Firm age was also significantly only in the year 2008 and with insignificant in years 2009 and 2010. While, profitability (measured by earning per share) and liquidity ratio were significantly in the years 2009 and 2010, and insignificantly only in the year 2008 with the level of forward-looking disclosure. However, leverage, ownership dispersion, profitability (measured by return equity ratio) and industry type variables were found insignificantly associated with the level of forward-looking information disclosed in the annual reports for all the three years.
Author: Antonio Chirico
Publisher: LAP Lambert Academic Publishing
ISBN: 9783659442803
Category :
Languages : en
Pages : 172
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Book Description
The objective of our work is to examine the relationship between the level of forward-looking disclosure and firm characteristics (structured-related variables, performance-related variables, and market-related variables)for the period 2008-2010. The results show that firm size and audit firm size were significantly (in all the three years) with the level of forward-looking disclosure. Firm age was also significantly only in the year 2008 and with insignificant in years 2009 and 2010. While, profitability (measured by earning per share) and liquidity ratio were significantly in the years 2009 and 2010, and insignificantly only in the year 2008 with the level of forward-looking disclosure. However, leverage, ownership dispersion, profitability (measured by return equity ratio) and industry type variables were found insignificantly associated with the level of forward-looking information disclosed in the annual reports for all the three years.
Author: William F. Floyd
Publisher:
ISBN:
Category :
Languages : en
Pages :
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Book Description
This thesis is comprised of two essays that explore how investors' uncertainty over financial reporting quality influences firms' voluntary disclosures. I consider two shocks that cause investors to assign a higher likelihood of restatement and examine how managers respond using voluntary disclosures. Managers inform stakeholders of the firm through mandatory disclosures (e.g. financial statements) and voluntary disclosures (e.g. earnings forecasts, conference calls, press releases). Financial reporting quality represents the extent to which financial statements faithfully reflect the underlying economics of the firm, and therefore, how much stakeholders can learn from these mandatory disclosures alone. The focus of this thesis is on how managers use voluntary channels to inform stakeholders following shocks to investors' expectations of financial reporting quality.
Author: Wayne R. Guay
Publisher:
ISBN:
Category :
Languages : en
Pages : 80
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Book Description
A growing literature documents that complex financial statements negatively affect the information environment. In this paper, we examine whether managers use voluntary disclosure to mitigate these negative effects. Employing cross-sectional and within-firm designs, we find a robust positive relation between financial statement complexity and voluntary disclosure. This relation is stronger when liquidity decreases around the filing of the financial statements, is stronger when firms have more outside monitors, and is weaker when firms have poor performance and greater earnings management. We also examine the relation between financial statement complexity and voluntary disclosure using two quasi-natural experiments. Employing a generalized difference-in-differences design, we find firms affected by the adoption of complex accounting standards (e.g., SFAS 133 and SFAS 157) increase their voluntary disclosure to a greater extent than unaffected firms. Collectively, these findings suggest managers use voluntary disclosure to mitigate the negative effects of complex financial statements on the information environment.
Author: Ron Kasznik
Publisher:
ISBN:
Category : Computer software industry
Languages : en
Pages : 60
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Book Description
Author: Peddina Mohana Rao
Publisher: Deep and Deep Publications
ISBN: 9788176292030
Category : Disclosure in accounting
Languages : en
Pages : 388
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Book Description
Author: Kees Camfferman
Publisher: Routledge
ISBN: 1000167836
Category : Business & Economics
Languages : en
Pages : 313
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Book Description
This book, first published in 1997, analyses the development of Dutch financial reporting. A process of change in international financial reporting began in the early 1960s, and this book examines the roles of voluntary and legislated improvements on financial information disclosure.
Author: Ling Tuo
Publisher:
ISBN:
Category :
Languages : en
Pages :
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Book Description
The importance of an effective corporate communication with all stakeholders including shareholders has been extensively debated in the business literature in the aftermath of 2007-2009 global financial crisis. The key indicator of business value have shifted from accounting profits and stock market performance, formerly, to firm reputation and sustainability performance, currently. Therefore, the transparency and value-relevance of conventional financial reporting has been questioned in terms of its capability to satisfy increasing information needs of all stakeholders. Many doubt whether those traditional financial metrics derived from financial statements can appropriately capture firm & rsquo;s long-term value creation ability. In recent years, users of corporate reports are demanding more relevant financial and non-financial on key performance indicators and forward looking information above and beyond conventional financial statements. To satisfy the demands of information users and decision makers, companies are expected to not only increase their reporting transparency in conventional financial statements but also disclose more inside information to outside public through different types of voluntary disclosure. The first dissertation investigates the role of sustainability report through examining the associations among voluntary disclosure, earnings quality and audit fee. Recently more and more firms begin to release sustainability reports, one important channel of voluntary disclosure, to satisfy the needs of information users and increase the transparency of financial reporting. In this paper, I especially examine the effect of voluntary disclosure quality on those associations. Through Difference-in-Difference test, I find that the release of sustainability report is positively correlated with innate earnings quality and negatively correlated with discretionary earnings quality. Moreover, the positive (negative) correlation between sustainability report and innate (discretionary) earnings quality is more (less) pronounced when the voluntary disclosure quality is high. I also find that the release of sustainability report is associated with higher audit fees and thus it suggests that the sustainability report cannot substitute the traditional financial statement. My conclusions are robust through additional tests of OLS regressions. This paper has important political, academic and industry application. The second dissertation investigates how the firm & rsquo;s cost stickiness strategy is associated with the firm & rsquo;s management earnings forecast (MEF). I conjecture that the managerial incentive regarding the cost strategy and voluntary disclosure strategy are interdependent. When managers choose their cost management, they will also choose the corresponding management earnings forecast strategy to align their interests. Through the empirical tests with a sample between year 2005 and 2011, I find that the firm & rsquo;s level of sticky cost is positively associated with the firm & rsquo;s propensity to issue MEF and the frequency of MEF. Moreover, I find that the firm & rsquo;s level of sticky cost is associated with more good earnings news forecasted by managers. Finally, I find that the relation between cost stickiness and MEF behaviors is more pronounced when the MEF is long-horizon oriented and when the firm efficiency is high. My research builds a link between financial accounting information and managerial accounting information, and also provides new evidence to understand the managerial incentives behind each strategy chosen by managers. This third dissertation investigates how industry peer firms tend to influence the specific firm & rsquo;s voluntary disclosure strategy. Through examining the empirical example of management earnings forecast between 2005 and 2011 and implementing the 2SLS regressions, I find that the specific firm & rsquo;s disclosure frequency, disclosure horizon and the disclosure of bad news are significantly influenced by its peers firms & rsquo; disclosure behaviors. Specifically, the increase in the peers & rsquo; disclosure frequency, disclosure horizon and disclosure of bad news tend to encourage the specific firm to increase its disclosure frequency, disclosure horizon and disclosure of bad news. Moreover, certain firms (such as firms with S & P credit rating, higher profit, larger size or higher market-to-book ratio) tend to be more sensitive to their peer firms & rsquo; voluntary disclosure strategy. Finally, I find that the specific leader-follower relation doesn & rsquo;t exist in the peer effects of disclosure strategy and thus the signaling theory, litigation risk and CEO reputation are more major reasons than herding theory and free rider theory in explaining this phenomenon.
Author: Sarah L. C. Zechman
Publisher:
ISBN:
Category :
Languages : en
Pages : 50
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Book Description
I investigate how the use and voluntary disclosure of synthetic leases is affected by incentives to defer cash outflows and keep debt off the balance sheet. I find that managers of cash-constrained firms with incentives to defer cash payments are more likely to finance asset purchases with synthetic leases. The mandated reporting for synthetic leases allows managers to avoid disclosing the financial consequences of these transactions. I find that managers of firms with incentives to use off-balance-sheet financing do not provide transparent disclosure about their synthetic leases. However, managers of cash-constrained firms, which are less likely to use synthetic leases for financial reporting reasons, do voluntarily disclose the existence and financial consequences of these contracts. Alternative tests around FIN 46 adoption corroborate these findings.
Author: Sarah L. Center Zechman
Publisher:
ISBN: 9780549810407
Category :
Languages : en
Pages : 123
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Book Description
Author: Patrick Roy
Publisher: diplom.de
ISBN: 3832448292
Category : Business & Economics
Languages : en
Pages : 141
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Book Description
Abstract: In a first step, this ERP derives the theoretical necessity to provide voluntary strategic and non-financial Information. It is argued that companies are an integral part of a common environment and society, acting in a framework of interdependent relationships. A company is more and more seen as a community of interests of different groups, and it can only act in an optimal way if the demands of all groups are taken into account and its behaviour is adjusted accordingly. In this context, interest groups' demands for company Information depend an the possibilities of improvements in decision making or monitoring that arise with its use, which in turn is mainly determined by the potential of Information to reduce uncertainty in the areas of interest. For external decision-makers, uncertainty often arises from sources about which conservative company statements provide little insight. Due to the traditional, finance-oriented concept of disclosure, this is particularly true for strategic and non-financial aspects. Related additional Information that is voluntarily provided can considerably reduce uncertainty, even more so as part of audited statements. Conventional financial reporting and existing disclosure requirements will generally not nearly satisfy those information needs of user groups. Any economic action, though, should only be taken if related benefits are exceeding related costs. This priority of economicalness also holds for companies' production, processing and disclosure of Information. Therefore, it is necessary to consider as detailed as possible potential opportunities and disadvantages for voluntarily disclosing company Information both an and outside capital markets. This is done in a second major part of the present work. First, voluntary disclosure can potentially affect share prices and thereby the market value of the firm, markets not being strong-form efficient. So, by giving company Information, a higher market value can directly be induced, thereby potentially lowering the cost of capital which, for example, improves the company's competitive position in the battle for cheap additional financing. [...]
