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Lee, Eric Y., and John R. Busenbark. "When Do Managers Disclose Negative Information? A Voluntary Disclosure Theory Perspective." Academy of Management Proceedings 2018, no. 1 (August 2018): 15427. http://dx.doi.org/10.5465/ambpp.2018.15427abstract.
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Al-Jabri, Ibrahim M., Mustafa I. Eid, and Amer Abed. "The willingness to disclose personal information." Information & Computer Security 28, no. 2 (August 26, 2019): 161–81. http://dx.doi.org/10.1108/ics-01-2018-0012.
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Purpose Customer privacy and security are major concerns. Online firms worldwide collect customer data for various reasons. This study aims to investigate factors that motivate and hinder a customer’s willingness to disclose personal information (WTD) to online firms on e-commerce websites. Design/methodology/approach Based on an extensive literature review, three sets of factors have been identified. These sets of factors are privacy concern, perceived disclosure benefits and privacy assurances. It is hypothesized that privacy concerns negatively affect the disclosure of personal information, while the perceived benefits of disclosure have positive effects. Privacy assurances would positively affect information disclosure and attenuate the negative effect of privacy concerns on the disclosure of personal information. The authors gathered data from 253 online customers in Saudi Arabia. Findings The results indicate that perceived disclosure benefits and privacy concerns have a significant positive and negative relationship, respectively, with WTD online. Privacy assurances had neither a direct nor a moderating effect on information disclosure. Research limitations/implications The findings will inform online firms about the factors that prevent or motivate customers to disclose personal information. Originality/value The effect of privacy concerns and benefits on personal information disclosure are not fully understood in Saudi Arabia. This study reveals more insights into the specific factors that make online customers reluctant or motivated to disclose their personal information.
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Elgammal, Mohammed M., Khaled Hussainey, and Fatma Ahmed. "Corporate governance and voluntary risk and forward-looking disclosures." Journal of Applied Accounting Research 19, no. 4 (November 12, 2018): 592–607. http://dx.doi.org/10.1108/jaar-01-2017-0014.
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PurposeThe purpose of this paper is to examine the impact of corporate governance on risk and forward-looking disclosures in Qatar.Design/methodology/approachThe authors automatically measure levels of risk and forward-looking disclosures in the annual reports of Qatari firms for the period 2008–2014. The authors also use two ways clustered error pooled panel regressions to examine the determinants of these disclosures.FindingsThe authors find that firms with a higher percentage of foreign ownership disclose more forward-looking information; conversely, board size has a negative impact on the forward-looking disclosure. Financial firms tend to disclose less forward-looking information, however, they tend to disclose more forward-looking information after the 2008 global financial crisis. The authors also find negative relationships between the risk disclosure and both the number of non-executive members of the board of directors and duality role of the CEO.Research limitations/implicationsThe study uses the quantity of disclosure as a proxy for the quality of disclosure.Practical implicationsThe findings should help the users of corporate annual reports in Qatar to understand managerial incentives for reporting risk and forward-looking information. This should help regulators to set a proper set of disclosure rules. Moreover, this study increases our understanding of the behavior of international investors and the board characteristics (i.e. board size) in motivating risk and forward-looking disclosures in Qatari firms.Originality/valueThe authors provide the original empirical evidence on the impact of corporate ownership and board characteristics on risk and forward-looking disclosures for Qatari firms using two ways clustered error pooled panel regressions.
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Nasser A., Alharbi Nesreen, and Yanhui Li. "Impacts of Trust in Government and Privacy Risk Concern on Willingness to Provide Personal Information in Saudi Arabia." INTERNATIONAL JOURNAL OF MANAGEMENT SCIENCE AND BUSINESS ADMINISTRATION 6, no. 2 (2020): 7–18. http://dx.doi.org/10.18775/ijmsba.1849-5664-5419.2014.62.1001.
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The current study followed a quantitative research design to determine the significance of the relationships presented in the research model. The relationships between Privacy risk concerns, benefit to disclose, trust, and willingness to provide personal information has been tested using SPSS. An online questionnaire in Arabic language was used collect data by distributing survey link via WhatsApp, Twitter, Snapchat, Facebook and Instagram. The sample consists out of 268 respondents. The results of the study indicate that trust has a positive impact on the privacy disclosure revenue whereas privacy risk concerns have a negative impact on the benefits of privacy disclosure. Also the privacy disclosure revenue has a positive impact on the willingness to disclose personal information. Users will increase the quantity and quality of information disclosure when the perceived benefit of personal information disclosure is high. The study also suggests that trust has a positive impact on the willingness to disclose personal information, and the user’s degree of trust in government protection policies and information environment will directly disclose the user’s information. Finally, privacy risk concerns have a negative impact on the willingness to disclose personal information, reduce the user’s perception of the risk of the policy environment and technical environment, and will increase the willingness of users to disclose personal information. Keeping the above points in consideration the Saudi government to keep their aims high towards strong legislations regarding personal data sharing, privacy right and security of the data so that the trust of citizens can be gained towards e-governance.
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Filzen, Joshua J. "The Information Content of Risk Factor Disclosures in Quarterly Reports." Accounting Horizons 29, no. 4 (June 1, 2015): 887–916. http://dx.doi.org/10.2308/acch-51175.
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SYNOPSIS I examine whether recently required risk factor update disclosures in quarterly reports provide investors with timely information regarding potential future negative economic events. Specifically, I examine whether risk factor updates in 10-Q filings are associated with negative abnormal returns at the time the updates are disclosed and whether quarterly updates are followed by negative earnings shocks. I find that firms presenting updates to their risk factor disclosures have significantly lower abnormal returns around the filing date of the 10-Q relative to firms without updates. I also find that firms with updates to their risk factors section have significantly lower future unexpected earnings and are more likely to experience future extreme negative earnings shocks. These findings suggest that the recent disclosure requirement mandated by the SEC was successful in generating timely disclosure of bad news. JEL Classifications: M41; M48; D80; G18. Data Availability: Please contact the author for data availability.
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Super, Sagin Oghenekowhodo, and Nikhil Chandra Shil. "Determinants of Quality Accounting Information Disclosure." Journal of Accounting and Finance in Emerging Economies 3, no. 1 (June 30, 2017): 79–86. http://dx.doi.org/10.26710/jafee.v3i1.94.
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Purpose: This study aims at examining the factors determining the quality of accounting information disclosure in Nigerian firms. The study made use of secondary data obtained from the Nigerian stock exchange. Ordinary least square regression technique was used to test the hypothesis for this study. The study found a positive relationship between firm size and disclosure quality. Institutional ownership, firm performance and earnings per share also had a positive relationship with disclosure quality. Firm leverage was found to have a negative relationship with disclosure quality. This study recommends that firms should introduce the idea of institutional ownership and also leverage usage should be minimized.
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Bertomeu, Jeremy, Anne Beyer, and Ronald A. Dye. "Capital Structure, Cost of Capital, and Voluntary Disclosures." Accounting Review 86, no. 3 (May 1, 2011): 857–86. http://dx.doi.org/10.2308/accr.00000037.
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ABSTRACT: This paper develops a model of financing that jointly determines a firm’s capital structure, its voluntary disclosure policy, and its cost of capital. Investors who receive securities in return for supplying capital sometimes incur losses when they trade their securities with an informed trader. The firm’s disclosure policy and the structure of its securities determine the information advantage of the informed trader and, hence, the size of investors’ trading losses and the firm’s cost of capital. We establish a hierarchy of optimal securities and disclosure policies that varies with the volatility of the firm’s cash flows. Debt securities are often optimal, with the form of debt—risk-free, investment grade, or “junk”—varying with the firm’s cash flow volatility. Though the model predicts a negative association between firms’ cost of capital and the extent of information firms disclose, more expansive voluntary disclosure does not cause firms’ cost of capital to decline. Mandatory disclosures alter firms’ voluntary disclosures, their capital structure choices, and their cost of capital.
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Shin, Hoyoung, and Hyunmin Oh. "The Effect Of Accruals Quality On The Association Between Voluntary Disclosure And Information Asymmetry In Korea." Journal of Applied Business Research (JABR) 33, no. 1 (December 29, 2016): 223–36. http://dx.doi.org/10.19030/jabr.v33i1.9892.
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Using data on the firms' voluntary disclosures from the Korea Stock Exchange from 2011 to 2014, we first empirically examine the association between voluntary disclosure and information asymmetry and then investigate the extent to which this association is affected by accruals quality since Korea adopted International Financial Reporting Standards (IFRS) in 2011. We use Comprix et al. (2011) and Shin and Park (2014)'s measures of information asymmetry. They are daily stock return volatility (VOLA) and trading volume turnover (VOL). We use the Dechow et al.'s (1995) revised Jones model and the Kothari et al.'s (2005) performance matched discretionary accrual model to measure the discretionary accruals. The absolute values of discretionay accruals are used as proxies for accruals quality. Final research samples with voluntary disclosure for this study are 1,226 (firms-years) companies. The research findings generally support our hypotheses. First, the relation between voluntary disclosure and information asymmetry is statistically and significantly positive as we have expected. The Korean companies with high voluntary disclosure would experience higher daily stock return volatility and less trading volume, which implies that companies tend to disclose biased information to the outside, which is consistent with prior studies in Korea. Second, the accruals quality (moderating variable) on the relation between voluntary disclosure and information asymmetry is statistically and significantly negative. Thus, we can conclude that when accruals quality is high, more voluntary disclosure decreases information asymmetry. These findings imply that accruals quality works as a mechanism in reducing the negative effect of voluntary disclosure on information asymmetry after the adoption of IFRS in Korea. The limitation of this study is such that we might not have considered other omitted variables and other proxies for the accruals quality, voluntary disclosure, and information asymmetry.
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Kim, Bitna, Kyung-Shik Shin, and Sangmi Chai. "How People Disclose Themselves Differently According To The Strength Of Relationship In SNS?" Journal of Applied Business Research (JABR) 31, no. 6 (October 28, 2015): 2139. http://dx.doi.org/10.19030/jabr.v31i6.9472.
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Self-disclosure is defined as “act of revealing personal information to others” (Archer, 1980, p.183). It plays a key role in development and maintenance of relationships.Since many companies adopt social networking services for their organizational information sharing platform, it is important to identify the process of creating and maintaining social relationship in virtual spaces for successful adoption of SNS. In this research, we identify a self-disclosure as a driving factor for initiating and maintaining online social relationships.This research assumes that the self-disclose strategy adopted by participants in a communication process would be very similar between a face to face communication and a communication through SNS. In addition, this study explores that how the strength of social relationship does affects participants’ self-discloser strategy in SNS.Self-disclosure on SNS is multidimensional and it consists of five dimensions; intent to disclose, amount, the positive-negative nature, the honesty-accuracy, and general depth-control of disclosure. Our research indicates that strength of relationship affect negatively the amount of disclosure on SNS. SNS users, in other words, less reveal themselves in terms of both frequency and duration to other user in strong tie than in weak tie. We found that strength of social ties significantly influenced dimensions of self-disclosure except for the positive-negative nature of disclosure.
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Ekundayo, Gbenga, Ndubuisi Jeffery Jamani, and Festus Odhigu. "Environmental Disclosure Modelling in a Developing Economy: Does Corporate Governance Matter? A Double Hurdle Regression Approach." International Journal of Financial Research 12, no. 4 (March 18, 2021): 111. http://dx.doi.org/10.5430/ijfr.v12n4p111.
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The paper examines environmental Disclosure Modelling in a Developing Economy using the Craigg double hurdle model and controlling for the role of corporate governance. This study employs the ex-post research design and investigates firm’s environmental disclosures in Nigeria, by controlling for corporate governance characteristics. The study employs a sample of 35 non-financial firms listed on the Nigerian Stock Exchange using the simple random sampling technique. Secondary data retrieved from the financial statements of the selected companies was used for the study. Both the Tobit and double-hurdle models were estimated but based on the Bayesian and Akaike’s information criteria for model selection, the double-hurdle model is preferred. The result reveals that though Board size is not a significant determinant of probability to disclose environmental information in annual reports (-0.0408, p=0.175), it is a significant determinant of the extent of environmental disclosure reports (0.1943, p=0.00) given that a firm has decided to disclose. Board independence is a significant determinant of both probability to disclose environmental information and extent of disclosure (-2.2373, p=0.00) with a negative coefficient. The Board gender diversity is not a significant determinant of probability to disclose environmental information in annual reports (-0.60076, p=0.461), it is a nevertheless a significant determinant of the extent of environmental disclosure reports (-3.5913, p=0.00) when firms then decide to disclose. Institutional ownership turns out to be a significant determinant of both the probability to disclose environmental information and extent of disclosure (0.0273, p=0.00) when firms choose to disclose. Finally, the truncated model results also reveals that though managerial ownership is not a significant determinant of probability to disclose environmental information in annual reports (-0.01352, p=0.148), it is nevertheless a significant determinant of the extent of environmental disclosure reports (-0.0206, p=0.001) when firms then decide to disclose.
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Beneish, Messod Daniel, Mary Brooke Billings, and Leslie D. Hodder. "Internal Control Weaknesses and Information Uncertainty." Accounting Review 83, no. 3 (May 1, 2008): 665–703. http://dx.doi.org/10.2308/accr.2008.83.3.665.
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We analyze a sample of 330 firms making unaudited disclosures required by Section 302 and 383 firms making audited disclosures required by Section 404 of the Sarbanes-Oxley Act. We find that Section 302 disclosures are associated with negative announcement abnormal returns of −1.8 percent, and that firms experience an abnormal increase in equity cost of capital of 68 basis points. We conclude that Section 302 disclosures are informative and point to lower credibility of disclosing firms' financial reporting. In contrast, we find that Section 404 disclosures have no noticeable impact on stock prices or firms' cost of capital. Further, we find that auditor quality attenuates the negative response to Section 302 disclosures and that accelerated filers—larger firms required to file under Section 404—have significantly less negative returns (−1.10 percent) than non-accelerated filers (−4.22 percent). The findings have implications for the debate about whether to implement a scaled securities regulation system for smaller public companies: material weakness disclosures are more informative for smaller firms that likely have higher pre-disclosure information uncertainty.
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Yang, Hongwei “Chris.” "Prior Negative Experience, Online Privacy Concerns and Intent to Disclose Personal Information in Chinese Social Media." International Journal of E-Business Research 10, no. 2 (April 2014): 23–44. http://dx.doi.org/10.4018/ijebr.2014040102.
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A paper survey of 489 Chinese college students was conducted in spring, 2012 to test a conceptual model of online information disclosure in social media. It shows that young Chinese SNS users' prior negative experience of online disclosure significantly increased their online privacy concerns and their perceived risk. Their online privacy concerns undermined their trust of online companies, marketers and laws to protect privacy and elevated their perceived risk. Their trust strongly predicted their intent to disclose the lifestyle and sensitive information. Their online privacy concerns only inhibited them from disclosing sensitive information in social media. However, their prior negative experience did not directly predict their intent of self-disclosure on SNS. Implications for academia and industry are discussed.
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Mothersbaugh, David L., William K. Foxx, Sharon E. Beatty, and Sijun Wang. "Disclosure Antecedents in an Online Service Context." Journal of Service Research 15, no. 1 (December 20, 2011): 76–98. http://dx.doi.org/10.1177/1094670511424924.
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The authors propose and find that the mixed results of prior research regarding disclosure antecedents are due in part to a failure to account for information sensitivity. Using prospect theory to examine willingness to disclose in an online service context, the authors propose and find that greater sensitivity of information requested produces weaker effects of customization benefits but stronger effects of information control and online privacy concern. The authors also find that customization benefits can overcome the negative effects of sensitive information requests when concern is lower or control is higher, and that perceived risk and firm trust are mechanisms through which disclosure antecedents operate. For theory, this research suggests that online disclosure models need to include sensitivity of information as a moderator. Moreover, the privacy paradox (consumers voice concerns but still disclose) may result from a failure to account for information sensitivity, since the authors find no effect of privacy concern on overall disclosure but find the predicted negative effect for higher sensitive information. For practice, our research suggests actionable strategies to aid online marketers in matching information requests with the needs and concerns of consumers by providing greater control and customization, enhancing firm trust, and adapting information requests to the situation.
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Katayama, Miyuki. "The relationship between self-esteem and self-disclosure of negative information." Japanese journal of psychology 67, no. 5 (1996): 351–58. http://dx.doi.org/10.4992/jjpsy.67.351.
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Goncharenko, Roman, Juraj Hledik, and Roberto Pinto. "The dark side of stress tests: Negative effects of information disclosure." Journal of Financial Stability 37 (August 2018): 49–59. http://dx.doi.org/10.1016/j.jfs.2018.05.003.
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Shalev, Ron. "The Information Content of Business Combination Disclosure Level." Accounting Review 84, no. 1 (January 1, 2009): 239–70. http://dx.doi.org/10.2308/accr.2009.84.1.239.
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ABSTRACT: This study explores causes and effects of business combinations disclosure level. Investigating the association between disclosure level on business combination and acquirers' future performance, I find that acquirers' future performance as measured by the change in ROA and by abnormal stock returns increases with abnormal levels of disclosure on business combinations. Investigating the determinants of business combination disclosure, I find that the disclosure level on business combinations decreases with abnormal levels of the purchase price allocated to goodwill. Both results provide evidence consistent with disclosure theory and suggest that acquirers tend to provide less forthcoming disclosure on less favorable acquisitions (“bad news”). I also provide evidence consistent with investors failing to immediately incorporate the information content of business combination disclosure level into their information set and evidence that investors are quicker to react to firms with negative abnormal disclosure.
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Pinsker, Robert. "Long Series of Information and Nonprofessional Investors' Belief Revision." Behavioral Research in Accounting 19, no. 1 (January 1, 2007): 197–214. http://dx.doi.org/10.2308/bria.2007.19.1.197.
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This paper reports the results of an experiment designed to examine the effect of disclosure pattern (sequential versus simultaneous) and direction of information (positive/negative versus negative/positive) on nonprofessional investors' belief revisions. An important feature of the experiment is that long series of information are used. Prior research has largely examined individuals' belief revisions using short series of information. Results indicate that individuals revise beliefs to a larger extent when the disclosure pattern is sequential rather than simultaneous. The findings extend the prior belief revision literature by providing evidence that results hold using long series of information: the current experiment uses 20 pieces of information, whereas most accounting studies only use four pieces of information. Results also contribute to the extant financial accounting literature on nonprofessional investors that is particularly relevant given the larger number of inexperienced investors entering the marketplace and recent legislation that requires more detailed firm disclosures (e.g., the Sarbanes-Oxley Act [SOX] of 2002).
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Utomo, Kurniawan Cahyo, and Y. Anni Aryani. "THE DETERMINANT OF FINANCIAL INFORMATION DISCLOSURE ON INDONESIAN LGs WEBSITE." Asia Pacific Fraud Journal 1, no. 1 (February 3, 2017): 85. http://dx.doi.org/10.21532/apfj.001.16.01.01.07.
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This research aims to find out the effect of size, leverage, wealth, audit opinion, liquidity, and press visibility of Local Governments (LGs) on the financial information disclosure through Indonesian LGs website. Center for Regional Information Study (Pattiro) states that only 28% of LGs disclose their financial information through website, and this proves lack of public transparency. This research method is using multiple linear regression. The population is 456 Local Governments (LGs) in Indonesia, with the research sample as many as 187 LGs conducted using purposive sampling method. The type of research data is secondary data. Empirical results show that size and wealth have positive effect on the financial information disclosure through website. Press visibility has negative effect on the financial information disclosure through website. While leverage, audit opinion, and liquidity do not have effect on the financial information disclosure through website. The implication of this research is that The Ministry of Home Affairs could develop a system of reward and punishment to motivate the LGs to improve their level of financial information disclosure through the website.
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Healy, Paul M., and George Serafeim. "Voluntary, Self-Regulatory, and Mandatory Disclosure of Oil and Gas Company Payments to Foreign Governments." Accounting Horizons 34, no. 1 (November 1, 2019): 111–29. http://dx.doi.org/10.2308/horizons-17-133.
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SYNOPSIS Concerns about high rates of government corruption in resource rich countries have led transparency advocates to urge oil and gas firms to disclose payments to host governments for natural resources. Transparency, they argue, can increase government accountability and mitigate corruption. However, we find a low frequency of voluntary disclosures of payments by oil and gas firms, and negative stock price reactions for affected firms at the announcement of regulations mandating disclosure. This suggests that sample firm managers and their investors perceive that such disclosures generate private costs, despite any public benefits. We document that industry self-regulation has generated information to substitute for the gap in voluntary company disclosure and that such disclosures are accompanied by lower country corruption ratings. This suggests that collective action could be an effective way for companies to manage the private costs of disclosure and respond to public pressure for transparency that could provide public benefits. JEL Classification: M441; M48; H41; G38.
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Morosan, Cristian. "Information Disclosure to Biometric E-gates: The Roles of Perceived Security, Benefits, and Emotions." Journal of Travel Research 57, no. 5 (May 29, 2017): 644–57. http://dx.doi.org/10.1177/0047287517711256.
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Biometric authentication systems, such as electronic (e-)gates are increasingly important in air travel because of the growing traveler flows and security challenges. Such systems allow for accurate authentication and the improvement of the air travel experience, while enhancing the security of the overall travel system. To authenticate, the travelers are required to disclose biometric information. Grounded in equity and emotion theories and using data from 511 US air travelers, this study examined several antecedents of biometric information disclosure to e-gates. It was found that security perceptions and benefits of disclosure had strong impacts on disclosure, while positive and negative emotions influenced travelers’ perceptions of security.
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TAKAHASHI, Mayu, and Munechika ITO. "The effect of self-esteem on the self-disclosure of negative information." Proceedings of the Annual Convention of the Japanese Psychological Association 77 (September 19, 2013): 1EV—008–1EV—008. http://dx.doi.org/10.4992/pacjpa.77.0_1ev-008.
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Li, Li, Quanqi Liu, Jun Wang, and Xuefei Hong. "Carbon Information Disclosure, Marketization, and Cost of Equity Financing." International Journal of Environmental Research and Public Health 16, no. 1 (January 8, 2019): 150. http://dx.doi.org/10.3390/ijerph16010150.
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Using listed enterprises in China’s heavy pollution industry from 2009 to 2013, this study tests the relationship between marketization degree, carbon information disclosure, and the cost of equity financing. The results show that, regardless of marketization degree, the overall level of carbon information disclosure of listed enterprises in China’s heavy pollution industry is low. The content of carbon information disclosure is mainly non-financial carbon information, and the financial carbon information disclosure is very low. The cost of equity financing is different in areas with different marketization degrees, specifically speaking, the cost of equity financing is lower in regions with a high marketization degree than that of a low marketization degree. Carbon information disclosure, non-financial carbon information disclosure, and financial carbon information disclosure are negatively correlated with the cost of equity financing. The marketization degree has strengthened the negative correlation between carbon information disclosure, non-financial carbon information disclosure, financial carbon information disclosure, and the cost of equity financing, respectively.
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Farkas, Maia, and Walied Keshk. "How Facebook influences non-professional investors’ affective reactions and judgments." Journal of Financial Reporting and Accounting 17, no. 1 (March 11, 2019): 80–103. http://dx.doi.org/10.1108/jfra-10-2017-0092.
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Purpose The use of social networking websites by companies to disclose corporate news and by investors to collect information for investment purposes is increasing rapidly. However, the role of investors’ affective reactions to corporate disclosures on social networking websites is under-researched. This paper aims to examine how the disclosure platform (disclosing news on a company’s Facebook Web page or the corporate investor relations Web page) and news valence (positive or negative) jointly influence investors’ affective reactions to corporate news and stock price change judgments. Design/methodology/approach The authors conduct an experimental study using 364 participants from Amazon’s Mechanical Turk website as a proxy for reasonably informed investors. Findings Results show that the disclosure platform influences investors’ affective reactions and stock price change judgments when the corporate news is negative, but not when the corporate news is positive. In addition, investors’ affective reactions mediate the influence of the disclosure platform on investors’ stock price change judgments when the corporate news is negative rather than positive. Originality/value This paper extends the theory on affective reactions to a social networking context by showing that differences in disclosure platforms and news valence influence investors’ affective reactions to corporate news. In addition, the study’s theory and findings have significant implications for researchers, company managers and public relations specialists, capital market participants, regulators and investor education organizations and users of social networking websites.
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Pan, Yue, Qiuping Chen, and Pengdong Zhang. "Does policy uncertainty affect corporate environmental information disclosure: evidence from China." Sustainability Accounting, Management and Policy Journal 11, no. 5 (June 23, 2020): 903–31. http://dx.doi.org/10.1108/sampj-10-2018-0298.
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Purpose The purpose of this study is to investigate whether and how policy uncertainty affect corporate environmental information disclosure. Design/methodology/approach This study conducts a difference-in-difference estimation and systematically investigates the relationship between policy uncertainty and corporate environmental information disclosure. The baseline regression results are robust to a series of robustness and endogeneity tests. Findings The authors show that firms located in cities with stronger policy uncertainty disclose less information on environmental issues. Furthermore, this negative relationship is stronger in the Midwest and in pre-industrial regions and for stated-owned firms and firms in highly polluting industries. Practical implications This study argues that policy uncertainty reduce the corporate disclosure of environmental information. Therefore, the results provide evidence on how to better emphasize the importance of green gross domestic product in the performance appraisal system for officials. Social implications This study confirms that corporate environmental disclosure is a response to public pressure. The results encourage the government and the public to increase corporate awareness of environmental protection. Originality/value This study contributes to the literature in the following ways. First, the authors provide a new perspective to study the relationship between policy uncertainty and corporate finance. Second, it contributes to the literature on corporate environmental information disclosure by linking policy uncertainty with firms’ disclosure of environmental information. Third, this study is a serious attempt to solve the problem of endogeneity between policy uncertainty and corporate environmental information disclosure.
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Sun, Yuan, Shuyue Fang, and Yujong Hwang. "Investigating Privacy and Information Disclosure Behavior in Social Electronic Commerce." Sustainability 11, no. 12 (June 15, 2019): 3311. http://dx.doi.org/10.3390/su11123311.
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Social e-commerce has steadily emerged as a current trend for an enormous amount of Internet users. Despite the popularity and prevalence of social e-commerce, many users hesitate to disclose their information due to privacy concerns. This resistance from users impedes the development of social e-commerce enterprises. In order to help enterprises collect more user information and establish better development strategies, this research builds on the Privacy Antecedent-Privacy Concern-Outcomes (APCO) model and the theory of privacy calculus. This research investigates how the privacy antecedents of hot topic interactivity and group buying experience influence users’ privacy concerns and perceived benefits as well as how to further influence users’ information disclosure behavior. The results from 406 questionnaire responses indicate that hot topic interactivity and group buying experience have significant negative impacts on privacy concerns and significant positive impacts on perceived benefits. Privacy concerns negatively influence the behavior of information disclosure while perceived benefits positively influence the behavior of information disclosure. Based on these results, social e-commerce enterprises should promote users’ behaviors of hot topic interactivity and group buying to stimulate users’ information disclosure behavior.
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Hadi, Ahwan, Lilik Handajani, and I. Nyoman Nugraha Ardana Putra. "Financial Disclosure based on Web-ICT Determinants." International Research Journal of Management, IT & Social Sciences 5, no. 1 (January 19, 2018): 72. http://dx.doi.org/10.21744/irjmis.v5i1.598.
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The purpose of this research is to analyze the influence of local government characteristic and accountability performance on the financial disclosure based on WEB-ICT and how it’s implications for local government financial performance as a response to the public information disclosure requirements. Using 307 regencies and cities local government in Indonesia as samples based on purposive sampling and analyze by SEM-PLS technique. The result shows that local government characteristic and accountability of local government performance has a positive influence on financial disclosure based on web-ICT. It indicates that local governments with better performance accountability levels and have greater or more mature characteristics will disclose wider financial information through the website. These findings are consistent with the signaling theory which states that organizations tend to provide a signal in the form of information disclosure to stakeholders to describe positive conditions. This study also found that financial disclosure based on web-ICT has a negative influence on local government financial performance, public sector characteristics that are nonprofit oriented cause disclosure of financial information does not encourage the financial performance of local government. Unlike the private sector, the disclosure of information encourages better corporate financial performance.
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Hapsoro, Dody, and Ambarwati Ambarwati. "ANTECEDENTS AND CONSEQUENCES OF CARBON EMISSIONS’ DISCLOSURE: CASE STUDY OF OIL, GAS AND COAL COMPANIES IN NON-ANNEX 1 MEMBER COUNTRIES." Journal of Indonesian Economy and Business 33, no. 2 (May 13, 2018): 99. http://dx.doi.org/10.22146/jieb.28756.
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The purpose of this study is to determine the characteristics of companies that voluntarily disclose carbon emissions and to examine the economic consequences of the carbon emissions’ disclosure. Companies used in the sample are oil, gas and coal companies in non-Annex 1 member countries registered in the Osiris database. The observation period was from the commencement of the Kyoto Protocol's second commitment to date, or from 2013 to 2016. Measuring the carbon emissions’ disclosure is achieved by using a checklist developed from an information request sheet from the CDP (Carbon Disclosure Project). An assessment of the extent of the disclosure is made using the content analysis method. Company characteristics are proxied with leverage, profitability and firm age, while the economic consequences are proxied by using bid-ask spreads, the trading volume and share price volatility. The data analysis method used in this research is the Partial Least Square (PLS) method using the WarpPLS 4.0 application. Test results show that leverage, profitability and firm age have a positive effect on the carbon emissions’ disclosure. Furthermore, the test results show that carbon emissions’ disclosures have a positive effect on the trading volume and a negative effect on the bid-ask spreads and share price volatility. The above findings imply that firms with higher leverage, higher profitability and are older are more willing to reveal their carbon emissions’ disclosures. The more information that is contained in a carbon emissions’ disclosure, the more investors are interested in trading that company's shares, while the broader the carbon emissions’ disclosure is, the smaller the bid-ask spread and the less volatile the stock price are.
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Ben-Amar, Walid, Nadia Smaili, and Eustache Ebondo Wa Mandzila. "Corporate Social Responsibility And The Quality Of Executive Compensation Disclosures." Journal of Applied Business Research (JABR) 30, no. 2 (February 27, 2014): 625. http://dx.doi.org/10.19030/jabr.v30i2.8433.
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This paper examines the relationship between corporate social responsibility and executive compensation disclosure quality. We test whether socially responsible firms disclose more transparent and detailed information about their executive compensation packages than firms that are less committed to social responsibility initiatives. Using a sample of 187 publicly listed Canadian firms, we find a positive relation between CSR and executive compensation disclosure quality. We also document a positive (negative) association between firm size (ownership concentration) and executive compensation disclosure. These findings support the conclusion that increased disclosure transparency reflects a companys social engagement towards its stakeholders.
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Acharya, Viral V., Peter DeMarzo, and Ilan Kremer. "Endogenous Information Flows and the Clustering of Announcements." American Economic Review 101, no. 7 (December 1, 2011): 2955–79. http://dx.doi.org/10.1257/aer.101.7.2955.
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We consider the strategic timing of information releases in a dynamic disclosure model. Because investors don't know whether or when the firm is informed, the firm will not necessarily disclose immediately. We show that bad market news can trigger the immediate release of information by firms. Conversely, good market news slows the release of information by firms. Thus, our model generates clustering of negative announcements. Surprisingly, this result holds only when firms can preemptively disclose their own information prior to the arrival of external information. These results have implications for conditional variance and skewness of stock returns. (JEL D21, D83, G12, G14, L11)
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John, Leslie K., Kate Barasz, and Michael I. Norton. "Hiding personal information reveals the worst." Proceedings of the National Academy of Sciences 113, no. 4 (January 11, 2016): 954–59. http://dx.doi.org/10.1073/pnas.1516868113.
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Seven experiments explore people’s decisions to share or withhold personal information, and the wisdom of such decisions. When people choose not to reveal information—to be “hiders”—they are judged negatively by others (experiment 1). These negative judgments emerge when hiding is volitional (experiments 2A and 2B) and are driven by decreases in trustworthiness engendered by decisions to hide (experiments 3A and 3B). Moreover, hiders do not intuit these negative consequences: given the choice to withhold or reveal unsavory information, people often choose to withhold, but observers rate those who reveal even questionable behavior more positively (experiments 4A and 4B). The negative impact of hiding holds whether opting not to disclose unflattering (drug use, poor grades, and sexually transmitted diseases) or flattering (blood donations) information, and across decisions ranging from whom to date to whom to hire. When faced with decisions about disclosure, decision-makers should be aware not just of the risk of revealing, but of what hiding reveals.
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Seenivasan, Satheesh, and Dominic Thomas. "Negative consequences of nutrition information disclosure on consumption behavior in quick-casual restaurants." Journal of Economic Psychology 55 (August 2016): 51–60. http://dx.doi.org/10.1016/j.joep.2016.02.009.
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Grote, Christopher L., William N. Robiner, and Allyson Haut. "Disclosure of negative information in letters of recommendation: Writers' intentions and readers' experiences." Professional Psychology: Research and Practice 32, no. 6 (December 2001): 655–61. http://dx.doi.org/10.1037/0735-7028.32.6.655.
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CUNNINGHAM, STACEY, and DAVID GADENNE. "DO CORPORATIONS PERCEIVE MANDATORY PUBLICATION OF POLLUTION INFORMATION FOR KEY STAKEHOLDERS AS A LEGITIMACY THREAT?" Journal of Environmental Assessment Policy and Management 05, no. 04 (December 2003): 523–49. http://dx.doi.org/10.1142/s1464333203001474.
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In recent decades several researchers have investigated the relationship between corporate environmental performance and environmental disclosures. A number of these studies have also investigated the positive/negative content of the disclosures, particularly following the occurrence of negative environmental events or media coverage. Limited research has investigated the usefulness of regulated public external disclosures of corporate environmental performance information as a driver of annual report environmental disclosure behaviour. The mandatory Australian National Pollutant Inventory now provides interested parties with access to information on corporate pollution emissions. This represents a change to the corporate operating environment and represents a potential threat to corporate legitimacy. This paper reports the results of research investigating the release of corporate pollution emission information on the National Pollutant Inventory and changes in corporate environmental disclosures in annual reports.
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Du, Chan, Liang Song, and Jia Wu. "Bank accounting disclosure, information content in stock prices, and stock crash risk." Pacific Accounting Review 28, no. 3 (August 1, 2016): 260–78. http://dx.doi.org/10.1108/par-09-2015-0037.
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Purpose This paper aims to examine how banks’ accounting disclosure policies affect information content in stock prices and stock crash risk. Design/methodology/approach This paper uses 1996-2013 as the sample period. The final sample includes 10,045 observations in 37 countries. This paper uses stock return synchronicity to measure information content in stock prices. This study uses the frequency difference between extremely negative and positive stock returns to measure stock crash risk. To measure the level of bank accounting disclosure, this research follows Nier and Baumann (2006) to construct an aggregate disclosure index based on inclusions and omissions of a series of items in a bank’s annual accounting reports. Findings This paper finds that banks’ stocks have lower stock return synchronicity and fewer extremely negative returns if banks have higher levels of financial statement disclosure. These results suggest that banks’ stocks have higher information content and lower crash risk if banks’ information environment is more transparent. Originality/value Overall, this paper provides new insight about how to increase banks’ transparency and the safety of the banking industry, which is beneficial to economic growth. To increase banks’ transparency and reduce the possibility of extremely negative stock returns, one way to regulate banks is to increase their accounting disclosure. In addition, the extant literature (Chen et al., 2006, Durnev et al., 2003, 2004; Wurgler, 2000) demonstrates that firms with lower stock return synchronicity have more transparent information environments and higher investment efficiency. Thus, this paper finds that higher levels of bank accounting disclosure are associated with lower stock return synchronicity, which further reduces banks’ opacity and increases banks’ investment efficiency. Finally, compared to business firms, stock crash risk has much direr consequences because one bank’s stock crash will affect overall financial stability. Thus, it is important for authorities to know the effects of accounting disclosure on bank stock crash risk.
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Yudhistira, Diaz Satriavi, and Dedy Sushandoyo. "Does political self-disclosure in social media hamper tacit knowledge sharing in the workplace?" VINE Journal of Information and Knowledge Management Systems 50, no. 3 (January 10, 2020): 513–30. http://dx.doi.org/10.1108/vjikms-08-2019-0128.
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Purpose The purpose of this is to explore recipients’ reactions to co-workers’ political self-disclosure on social media and their willingness to share tacit knowledge with the disclosers. The paper aims to understand whether political self-disclosure with dissimilar value and negative valence hampers tacit knowledge sharing among co-workers in a workplace setting. Design/methodology/approach This study applies an online survey combined with the experimental vignette methodology approach to collect respondent data. Further, the study uses the partial least squares-structural equation modelling method to analyse the 144 collected responses. Findings This study suggests that perceived content negativity towards co-workers’ political self-disclosure has a weak and significant indirect effect on recipients’ willingness to share tacit knowledge, and that perceived value dissimilarity has an insignificant indirect effect on recipients’ willingness to share tacit knowledge. Research limitations/implications This study is a cross-sectional research that was conducted at a public organisation, with a limited number of samples and non-probabilistic sampling method. Thus, the results of this study may be subject to bias, and the generalizability of the findings should be taken into consideration. Practical implications Although this study shows that political self-disclosure does not likely affect tacit knowledge sharing, senior management of an organisation is encouraged to educate their employees about the potential consequences of self-political disclosure embedded in information employees post in social media. The posted information may attract positive or negative perceptions from the recipient to the discloser. Therefore employees are expected to use social media properly and minimise the possibility of posting something that might trigger a negative perception or emotion from their co-workers. Originality/value Sharing topics related to political self-disclosure on social media potentially hampers tacit knowledge sharing in organisations and is relatively rare in the knowledge management literature. In particular, the existing literature bases its studies on private sector organisations. Furthermore, the empirical evidence of this study is based on an Indonesian public sector organisation, which is also relatively rare in the literature.
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Fernando, Guy Dinesh, Justin Giboney, and Richard A. Schneible. "Voluntary disclosures and market response to earnings announcements." Review of Accounting and Finance 17, no. 1 (February 12, 2018): 2–17. http://dx.doi.org/10.1108/raf-06-2016-0087.
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Purpose The aim of this paper is to investigate the impact of voluntary disclosure on information asymmetry between investors and the average information content of subsequent the earnings announcement. Design/methodology/approach The authors use empirical methodology relying on multiple regression analyses. The authors estimate models of trading volume and stock returns around the earnings’ release date as a function of voluntary disclosures, measured using information in the 8-K statements. Findings Voluntary disclosures prior to the earnings release date increase trading volume related to stock returns. In addition, voluntary disclosures also reduce stock price movement around that date. Research limitations/implications The results indicate that voluntary disclosures increase trading volume related to stock returns around the earnings release date. Such increases indicate increased differential precision among investors, demonstrating that voluntary disclosures increase differences in opinion among investors. The reduced stock price movement around the earnings release date also show that voluntary disclosures reduce the information content of earnings. One limitation is that the measure of voluntary disclosures does not consider the variation in the information content of individual disclosures. Practical implications Firms who make voluntary disclosures will need to carefully consider how to structure such releases to minimize asymmetry between investors. Investors should pay greater attention to finding out, and interpreting, voluntary disclosures by firms. Social implications Regulators have previously expressed concern about leveling the playing field between more and less informed investors. The results showing increased differences in information as a result of voluntary disclosures provide valuable insights as regulators debate the balance of mandated and voluntary disclosure. Originality/value This is the first study to investigate the effect of voluntary disclosures on information asymmetry among investors using trading volume and, consequently, the first to find increased differences among investors that result from those voluntary disclosures. The paper is also the first to use a direct measure of voluntary disclosure developed by Cooper et al. to demonstrate the negative relation between voluntary disclosure and the average informativeness of earnings announcements.
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Darus, Faizah, and Dennis Taylor. "Influences of proprietary and political costs on voluntary disclosure relating to financial instruments before and after mandatory requirements." Corporate Ownership and Control 6, no. 4 (2009): 391–406. http://dx.doi.org/10.22495/cocv6i4c3p5.
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The study examines whether the introduction of an accounting standard relating to the disclosure of financial instruments affects voluntary corporate disclosure, and the impact of proprietary and political costs on such disclosure decisions. Using the annual reports of 70 Australian listed companies over a period of 6 years giving 420 firm-year observations, this study investigates the comparative impacts of proprietary and political information costs on management’s voluntary disclosure decisions relating to financial instruments. The regulatory disclosure environment, the impact of proprietary costs (proxy by a firm’s investment growth opportunities) and political costs (proxy by a firm’s probability of financial distress, size of a company and negative media attention) relating to the voluntary disclosure of financial instruments were investigated. Results of this study provide evidence that the mandatory disclosure of non-proprietary information relating to financial instruments has resulted in an increase in the voluntary disclosure of related proprietary information. For the effects of proprietary and political costs, findings from the study suggest that a firm’s growth opportunities are significant in limiting voluntary disclosure of proprietary information in the period prior to regulation. Consistent with political cost hypothesis, legitimacy theory and media agenda-setting theory, the size of a company and high negative media attention are significantly positively related to voluntary corporate disclosure. However, financial distress has no effect on the voluntary disclosure of financial instruments-related information.
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Wang, Tao, Xiaowei Liu, Minghui Kang, and Haichao Zheng. "Exploring the determinants of fundraisers’ voluntary information disclosure on crowdfunding platforms." Online Information Review 42, no. 3 (June 11, 2018): 324–42. http://dx.doi.org/10.1108/oir-11-2016-0329.
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PurposeThe purpose of this paper is to examine factors affecting fundraisers’ voluntary information disclosure on crowdfunding platforms based on risk-perception theory (RPT).Design/methodology/approachStructural equation modeling was employed to test the hypothesized relationships using data collected from China.FindingsThe authors found that plagiarism risk and financing risk are two important variables that influence fundraisers’ voluntary information disclosure. Specifically, plagiarism risk has a negative effect on fundraisers’ voluntary information disclosure, while financing risk has a positive effect on fundraisers’ voluntary information disclosure. Plagiarism risk is affected by information concerns, perceived control, project innovativeness, and quality of alternatives, while financing risk is affected by protection policy and information norms.Originality/valueThis study enriches crowdfunding research by identifying factors influencing fundraisers’ voluntary information disclosure and contributes to RPT by applying it in a new crowdfunding context.
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Hamrouni, Amal, Anthony Miloudi, and Ramzi Benkraiem. "How does corporate voluntary disclosure affect asymmetric information and adverse selection?" Corporate Ownership and Control 12, no. 2 (2015): 413–25. http://dx.doi.org/10.22495/cocv12i2c4p1.
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This paper investigates whether the extent of corporate voluntary disclosure mitigates asymmetric information and adverse selection in the Euronext Paris stock exchange. We apply a disclosure index as a proxy for the extent of voluntary disclosure and use different spread measures to estimate both asymmetric information and adverse selection. Our findings show a negative relationship between the disclosure index and asymmetric information and adverse selection proxies. An analysis of sub-indexes provides additional mixed results. Several asymmetric information measures are negatively related to the volume of financial, non-financial and voluntary governance information in corporate annual reports. Nevertheless, the effect of strategic information volume is statistically significant only for effective bid-ask spreads. On the whole, these results are consistent with the view that high corporate voluntary disclosure is associated with narrow spreads and low adverse selection costs
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Bizzotto, Jacopo, and Benjamin Solow. "Electoral Competition with Strategic Disclosure." Games 10, no. 3 (July 6, 2019): 29. http://dx.doi.org/10.3390/g10030029.
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Recent developments in information and communication technologies allow candidates for office to engage in sophisticated messaging strategies to influence voter choice. We consider how access to different technologies influence the choice of policy platforms by candidates. We find that when candidates can target messages to specific voter groups, platforms are more likely to be inefficient. In particular, when candidates can run targeted campaigns, they commit to projects that benefit small groups even when the social cost of these projects outweigh their benefits. Our results are robust to negative advertising.
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Changlie, Yin, and Yuan Jing. "Financing constraints, equity pledge and the quality of information disclosure." E3S Web of Conferences 253 (2021): 03040. http://dx.doi.org/10.1051/e3sconf/202125303040.
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The application of big data in enterprise management is more and more common. With the data of A-share listed companies in Shenzhen Stock Exchange from 2014 to 2018, this paper examines the influence of controlling shareholders equity pledge on the quality of information disclosure and the moderating effect of financing constraints in the age of big data. There are two key findings. First, the controlling shareholders will take opportunistic action to reduce the quality of information disclosure so as to maintain the stock price and avoid the loss of control. And the higher the proportion of equity pledged, the stronger the incentive. Second, this phenomenon is influenced by the financing constraints, which means the negative relationship between equity pledge and the quality of information disclosure is more significant in high financing constraint enterprise than in low financing constraint enterprise. The above conclusions provide enlightenment for optimizing enterprise information disclosure in the era of big data.
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Dey, Pappu Kumar, Manas Roy, and Mohsina Akter. "What determines forward-looking information disclosure in Bangladesh?" Asian Journal of Accounting Research 5, no. 2 (August 24, 2020): 225–39. http://dx.doi.org/10.1108/ajar-03-2020-0014.
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PurposeThe study aims to examine the level and extent of forward-looking information (FLI) disclosure and identify the determinants driving the FLI disclosure (FLID) in the context of an emerging and developing economy.Design/methodology/approachThe sample includes annual reports of the top 30 listed companies in Bangladesh for the years 2013–2017. The content analysis approach is used to examine the practice of FLID and to determine the extent of FLID based on the index. Multiple linear regression analysis is performed to identify the determinants of FLID.FindingsThis research finds that board size, auditor's global affiliation, leverage and profitability have a substantial positive impact on FLID. By contrast, firm size and listing age have a significant negative association with FLID. Moreover, contrary to our expectation, female representation in the boardroom has an inverse effect on FLID. This study, however, does not suggest any significant impact of board independence.Research limitations/implicationsSmall sample size may limit the generalizability of the findings. Besides, the FLID index score may be affected by the subjective judgment while analyzing the content of the annual report.Practical implicationsThe findings of this paper may assist the regulators and policymakers in incorporating this new reporting paradigm in regulations. Alternatively, the current research can serve as a basis to further understand the importance of FLID for the stakeholders.Originality/valueThis empirical study contributes to the current FLI literature in Bangladesh. A handful of studies have been done to examine the nature and level of FLID and find out the determinants of FLID in the developing countries. To the best of the authors' knowledge, no study yet has been explored on FLID and its determinants by classifying them as qualitative and quantitative in Bangladesh.
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Gunawan, Juniati, and Criselda Elsa. "RISK DISCLOSURES IN THE MOST ADMIRED COMPANY’S REPUTATION." Media Riset Akuntansi, Auditing & Informasi 20, no. 2 (September 30, 2020): 247. http://dx.doi.org/10.25105/mraai.v20i2.7628.
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<p>This study aims to examine the influence of risk disclosures on a company's reputation, which was measured by the Indonesia’s Most Admired Company (IMAC) nomination in 2018. The sample applies the whole population registered in the IMAC. There were 133 companies which provided all data required. Using content analysis to calculate risk disclosures as independent variable and company's reputation by the Corporate Image Index (CII) as dependent variable, this study shows that risk disclosures has a significant influence on the company's reputation.</p><p>The results provide a new perspective on disclosure risk and company’s reputation since previous studies were very limited searching on risk disclosures related to corporate image. Since CII is publicly available, the risk disclosures need to be paid attention to balance the information for the stakeholders. Hence, this study contributes greatly for both academic and practice to understand that risk information may impact the corporate reputation, and therefore, adequate and balance disclosure (negative and positive information) is required. </p>
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Hapsoro, Dody, and Ratna Dwi Sulistyarini. "The effect of profitability and liquidity on CSR disclosure and its implication to economic consequences." Indonesian Accounting Review 9, no. 2 (October 29, 2019): 143. http://dx.doi.org/10.14414/tiar.v9i2.1730.
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This study examines the effect of profitability and liquidity on CSR disclosure and its implication on economic consequences. This study was driven by the inconsistency of the results of previous studies in testing the factors that influence the CSR disclosure. This study used the CSR disclosure to measure Corporate Social Responsibility disclosure index (CSRDI) based on the index of the Global Reporting Initiatives G4 Guideline (GRI G4). The results show that profitability has a significant and positive effect on CSR disclosure, while liquidity does not affect CSR disclosure. Furthermore, CSR disclosure has a negative effect on the bid-ask spread, CSR disclosure has a positive effect on trading volume, while CSR disclosure doesn't affect stock price volatility. This study impklies as the following;: companies that have high profitability should have strong commitment to disclose corporate social responsibility because it can help reduce information asymmetry.
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Abdullah, Maizatulakma, Zaleha Abdul Shukor, Zakiah Muhammadun Mohamed, and Azlina Ahmad. "Risk management disclosure." Journal of Applied Accounting Research 16, no. 3 (November 9, 2015): 400–432. http://dx.doi.org/10.1108/jaar-10-2014-0106.
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Purpose – The purpose of this paper is to examine the effect of voluntary risk management disclosure (VRMD) on firm value (FV). Design/methodology/approach – This study uses content analysis approach to collect the VRMD data. FV is represented by three variables: market capitalization, Tobin’s Q and market to book value of equity ratio. Based on a sample of 395 firms listed on the main market of Bursa Malaysia in 2011, this study uses multivariate statistical tests to examine the association between VRMD and FV. Findings – Based on the regression analysis, this study found that the VRMD has a positive and significant relationship with FV. Even though the authors hypothesize that damaging voluntary risk management disclosure (DVRMD) will have a negative and significant relationship with FV, the regression analysis shows that the DVRMD is not significantly related to FV. As expected, the relationship between beneficial voluntary risk management disclosure (BVRMD) and FV is positive and significant. The findings provide evidence that should be of interest especially to firms in terms of deciding upon whether to provide or avoid disclosing voluntary risk management information to their stakeholders. Research limitations/implications – Notwithstanding the critical empirical findings, this study is limited to only focusing on a one year data. The authors acknowledge the fact that findings from a one year data might not be easily generalized to other time periods. The authors believe a stronger argument could be obtained from evidence based on a longitudinal study or data that incorporate multiple economic conditions. The study highlights the fact that risks management information is important to investors in Malaysia when they make their investments decisions. Practical implications – To date, regulatory bodies emphasize more on financial risk management disclosure through the enforcement of MFRS 7; while non-financial risk information is less emphasized in current guidelines such as Malaysian Code on Corporate Governance (MCCG) (2012) and Recommended Practice Guide 5 (Revised), which only requires firms to disclose information about non-financial risk management without specific details. As this study has provided evidence on the significance of non-financial risk management disclosures in the capital market, this study could be useful for the regulatory bodies to develop more detailed guidelines on non-financial risk management disclosure in the future. Originality/value – Most of prior literatures are found to focus on the study of factors that influence the VRMD (such as Linsley and Shrives, 2006; Abraham and Cox, 2007; Hassan et al., 2009; Ismail and Abdul Rahman, 2011). Studies about the effects of voluntary risk management information disclosure is however very scant. Miihkinen (2013) studied the effects of risk management disclosure on information asymmetry. This paper adds to Miihkinen (2013) by investigating the relationship between VRMD and FV. This paper is expected to be the first to investigate on the empirical usefulness of VRMD in a developing country.
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Sulistiawan, Dedhy, and Felizia Arni Rudiawarni. "Do stock investors need to discuss to reduce decision bias?" Investment Management and Financial Innovations 16, no. 3 (July 11, 2019): 1–9. http://dx.doi.org/10.21511/imfi.16(3).2019.01.
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The research examines the role of discussion in investors’ decision in a step-by-step information setting. Several studies present that disclosure strategy stimulates order-effect bias, but simultaneous information decreases the impact of that bias. This bias makes people weigh more heavily to recent observations than they do to older ones. Using step-by-step information, a recency effect is expected to be found. This study uses an experimental method. The participants are the representation of non-professional investors in the stock market because of a lack of knowledge and experience. Participants are also a reflection of the customer easiness in registering to be stock traders. The role of discussion between participants is a new feature of this experiment. After evaluating participants’ decision in a discussion, the experiment shows that an individual’s choice after discussion produces more bias, although they already learn the information before the discussion. The research finds that (1) using the within-subject sample, group discussion produces overvaluation (undervaluation) in positive (negative) sequential information, (2) there is bigger price revision when negative sequential information is presented. This study suggests disclosure strategies for companies. Considering a recency bias, companies must present step-by-step information when they disclose good news, but they must avoid step-by-step disclosures when giving bad news. The second practical implication is for investors; they need to think about the benefits of joining an investor club, since the discussion exacerbates recency bias. These results are expected to contribute to finance literature.
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Cao, Sean Shun, Guang Ma, Jennifer Wu Tucker, and Chi Wan. "Technological Peer Pressure and Product Disclosure." Accounting Review 93, no. 6 (February 1, 2018): 95–126. http://dx.doi.org/10.2308/accr-52056.
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ABSTRACT We introduce a firm-specific measure of the technological aspect of competition—technological peer pressure—and examine firm-initiated product development-related press releases. We argue that empirical examinations of the theorized negative relation between competition and disclosure require the type of voluntary disclosure to be relevant to the dimension of competition under examination to ensure that firms incur significant proprietary costs of disclosure. In other words, many types of disclosure do not provide actionable information to competitors and, thus, should not be affected by that dimension of competition. We expect a negative relation between technological peer pressure and product disclosure because the latter reveals firms' strategies, allocations, and progress of technological investments in product development to competitors. In contrast, we do not expect a negative relation between technological peer pressure and management earnings forecasts—the most common type of voluntary disclosure used in accounting research. Our test results are consistent with these expectations. Data Availability: All data are available from public sources. Our TPP Measure is available for download, please see the link in Appendix G.
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Malofeeva, Tatiana N., Elena J. Makushina, and Vladimir Shestakov. "Voluntary disclosure of a company performance and the market reaction." LAPLAGE EM REVISTA 7, no. 3A (September 14, 2021): 616–33. http://dx.doi.org/10.24115/s2446-6220202173a1471p.616-633.
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In today's world, the disclosure of information by a firm affects its position in the financial markets. Enterprises contact investors utilizing reporting about certain events. For this purpose, both official financial reports and less regulated communication channels, such as the company's website on the Internet, personal meetings, or social networks, can be used. The relevance of this research result is primarily due to the increased attention of investors to voluntary disclosures rather than mandatory ones. By studying a sample of companies in the automotive industry from the United States and Europe, we found out that making positive and negative voluntary disclosures on the annual return on shares of these companies. The paper reports that this effect is significant: while it increases the shares' annual yield with positive disclosures and decreases with negative ones.
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Krasodomska, Joanna, and Charles H. Cho. "Corporate social responsibility disclosure." Sustainability Accounting, Management and Policy Journal 8, no. 1 (March 6, 2017): 2–19. http://dx.doi.org/10.1108/sampj-02-2016-0006.
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Purpose The purpose of this study is to examine the usage of non-financial information related to corporate social responsibility (CSR) issues from the perspective of sell-side analysts (SSAs) and buy-side analysts (BSAs) employed in Poland-based financial institutions. Design/methodology/approach The authors conducted a survey among financial analysts with the use of the computer-assisted telephone interview (CATI) method and an online questionnaire. The adopted methods included purposeful, quota sampling and snowball sampling. Findings Results indicate that financial analysts make use of CSR disclosures very rarely and attribute little importance to such information. Despite the limited use of CSR information and negative assessments of its quality, respondents are in favor of making a more frequent use of CSR disclosures. Finally, except for an analyst’s attitude toward the “comparability in time” information characteristic, results do not indicate any significant differences between SSAs’ and BSAs’ responses. Research limitations/implications The limited number of questionnaires prevented the use of more sophisticated statistical methods and the formulation of conclusions that could apply to the entire population. In addition, although the adopted CATI method provides a number of advantages, it also has its limitations – interviews had limited time and the questions along with the answers had to take into account the respondents’ limited perception ability. Practical implications The results of this study suggest that CSR disclosures have limited usage for financial analysts, at least in the Polish context. Further, not only do respondents rarely make use of CSR disclosures but they also give low assessments to their quality. This implies that the concept of CSR remains relatively far from becoming a priority; hence, some measures and incentives may be necessary. Originality/value The paper adds to a relatively small number of studies that have dealt with the issue of non-financial information and its usefulness for SSAs and BSAs in Central and Eastern Europe.
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Brochet, Francois. "Information Content of Insider Trades before and after the Sarbanes-Oxley Act." Accounting Review 85, no. 2 (March 1, 2010): 419–46. http://dx.doi.org/10.2308/accr.2010.85.2.419.
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ABSTRACT: This study examines the information content of Form 4 filings under the more timely disclosure regime introduced by Section 403 of the Sarbanes-Oxley Act of 2002 (SOX). Abnormal returns and trading volumes around filings of insider stock purchases are significantly greater after SOX than before. Abnormal trading volumes around filings of insider sales are also greater post-SOX, on average, but stock returns are not more negative. However, once controlling for pre-planned transactions, reporting lag, litigation risk, and news following insider trades, I find a negative association between returns around filings of insider sales and SOX. Overall, the evidence suggests that the prompt public disclosures about insider transactions mandated by the new rule are relevant to the pricing of securities. The results are also consistent with SOX and regulatory actions reducing the incentives to sell ahead of privately known negative news.