Download or read book The Effects of Voluntary Disclosure Level Ownership Structure and Proprietary Cost on the Return earnings Relation written by Shuqing Luo and published by . This book was released on 2003 with total page 132 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Voluntary Disclosure and Ownership Structure written by Surjit Tinaikar and published by . This book was released on 2010 with total page 55 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study focuses on the association of voluntary compensation disclosure and ownership structure. It provides evidence that the detachment of control and cash flow rights in dual class share firms is associated with lower levels of compensation disclosure. This association is incremental to the level of managerial ownership and family ownership. The study attributes these disclosure results to the political costs of high compensation levels in dual class share firms. Consistent with this explanation, the study finds that managers in dual class share firms earn higher compensation relative to their single class counterparts. To examine the research question, the study develops a new compensation disclosure index that has been unexplored in prior academic literature. An analysis within dual class firms reveals that compensation disclosure is decreasing in managers' voting control but increasing in their cash flow rights. This is consistent with a political cost explanation.

Download or read book Earnings Quality written by Jennifer Francis and published by Now Publishers Inc. This book was released on 2008 with total page 97 pages. Available in PDF, EPUB and Kindle. Book excerpt: This review lays out a research perspective on earnings quality. We provide an overview of alternative definitions and measures of earnings quality and a discussion of research design choices encountered in earnings quality research. Throughout, we focus on a capital markets setting, as opposed, for example, to a contracting or stewardship setting. Our reason for this choice stems from the view that the capital market uses of accounting information are fundamental, in the sense of providing a basis for other uses, such as stewardship. Because resource allocations are ex ante decisions while contracting/stewardship assessments are ex post evaluations of outcomes, evidence on whether, how and to what degree earnings quality influences capital market resource allocation decisions is fundamental to understanding why and how accounting matters to investors and others, including those charged with stewardship responsibilities. Demonstrating a link between earnings quality and, for example, the costs of equity and debt capital implies a basic economic role in capital allocation decisions for accounting information; this role has only recently been documented in the accounting literature. We focus on how the precision of financial information in capturing one or more underlying valuation-relevant constructs affects the assessment and use of that information by capital market participants. We emphasize that the choice of constructs to be measured is typically contextual. Our main focus is on the precision of earnings, which we view as a summary indicator of the overall quality of financial reporting. Our intent in discussing research that evaluates the capital market effects of earnings quality is both to stimulate further research in this area and to encourage research on related topics, including, for example, the role of earnings quality in contracting and stewardship.

Download or read book Ownership Structure and Voluntary Earnings Disclosures written by Faten Lakhal and published by . This book was released on 2007 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper investigates the relationship between ownership structure and voluntary earnings disclosures under high ownership concentration of French-listed firms from 1998 to 2001. The results using multinomial regression analysis show that French-listed firms are less likely to make voluntary earnings disclosures when they are controlled by a large shareholder or by a family, suggesting that low legal protection leads to expropriation of minority shareholders. The proportion of foreign institutional investors in capital is likely to mitigate this relationship since institutional investors signal good minority shareholders' protection to the market. Finally, French managers occasionally make voluntary disclosures when their firms are doing well, suggesting that they disclose information to benefit from stock prices increases.

Download or read book The Effect of Disclosure Level on the Cost of Equity Capital and Stock Market Liquidity written by Christine Ann Botosan and published by . This book was released on 1995 with total page 220 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Impact of Firm Ownership Structure on Voluntary Disclosure written by Anil K. Makhija and published by . This book was released on 1997 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: We investigate the impact of ownership structure on the extent of voluntary financial disclosure by examining the cross-sectional variation in the extent of disclosure in 1993 annual reports of newly privatized non-financial Czech firms included in the Prague stock Exchange 50 Index. A study of this sample forms a unique natural experiment to examine the impact of ownership on disclosure because the firms' ownership structures were exogenously set during the period studied and because the Czech accounting regime provided for great flexibility in the annual report disclosure choices of firms in 1993. In our conceptual model, owners derive benefits both directly from the firm and from changes in share values in the capital market. Both types of benefits are affected by the extent of disclosure made by the firm. We derive testable hypotheses regarding the effect of ownership on extent of disclosure based on owners' attempts to maximize their total benefits from ownership. As predicted by our hypotheses, we find that concentration of ownership and the size of stakes held by internal and external owners significantly affect the extent of disclosure, after controlling for non-ownership factors.

Download or read book Ownership Structure and Voluntary Disclosure written by Hichem Khlif and published by . This book was released on 2017 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: In this article, we meta-analyse 69 empirical studies assessing the association between corporate voluntary disclosure and ownership concentration and types, and how institutional characteristics and research design moderate these relationships. Our overall analyses show that state, foreign and institutional ownerships have a positive effect but managerial ownership and ownership concentration have a negative effect on voluntary disclosure. Since the overall effect may conceal the underlying factors that cause heterogeneity in the effect size distribution, we select two important institutional factors: country-level investor protection and the equity market development, and research design and journal quality, to explain the mixed and conflicting findings. Our results emphasise the need to consider legal and institutional characteristics, and researcher induced-artefacts, in understanding the role of ownership structure and identity in corporate voluntary disclosure.

Download or read book The Disclosure Effects of Dual Class Ownership Structures written by Surjit Tinaikar and published by . This book was released on 2007 with total page 318 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation thesis provides evidence that the detachment of control rights from cash flow rights in US and Canadian dual class share firms are associated with lower levels of voluntary disclosure. While prior studies have looked at the effect of ownership concentration on disclosure, this study focuses on one mechanism through which concentrated ownership is achieved and its effect on voluntary disclosure. The evidence is consistent with the explanation that controlling owners use opaqueness in disclosures to conceal private rents. To examine the research question, my study develops a new disclosure index that captures managerial discretionary disclosure decisions with respect to compensation practices. By attempting to address the selection bias that could confound the disclosure predictions, the study also provides empirical insights into which firms choose dual class equity. The within dual class sample analyses employed as an alternative method to mitigate selection biases, reveal that disclosure is decreasing in the largest controlling shareholder's divergence between control rights and cash flow rights. I also find evidence that disclosure levels are decreasing in the premium at which superior voting shares trade relative to inferior voting shares---a proxy for the controlling shareholder's private benefits from control. In addition to the above, I also provide some cross-country analyses. The evidence is largely consistent with a higher rent extraction explanation in weaker regimes. Dual class share firms in weaker regimes disclose lesser information than their stronger regime dual class share counterparts. Based on prior literature, Canada is hypothesized in this study to have weaker regulatory enforcement and thus a weaker investor protection environment. Finally, the study provides direct evidence that separating control rights from cash flow rights enables managers to extract private rents in the form of excess executive compensation.

Download or read book The Impact of Voluntary Disclosure Level on the Cost of Equity Capital in an Emerging Capital Market written by Ayman Elias Haddad and published by . This book was released on 2005 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Effects of Ownership Structure and Proprietary Cost on Forward Looking Information Disclosure and Its Impact on Firm Performance written by Ali Taebi Noghondari and published by . This book was released on 2012 with total page 386 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Differential Effects of Proprietary Cost on the Quality Versus Quantity of Voluntary Corporate Disclosures written by May Hongmei Zhang and published by . This book was released on 2005 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Proprietary Costs and Disclosure Substitution written by Mirko Stanislav Heinle and published by . This book was released on 2020 with total page 72 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study develops and tests a simple model of voluntary disclosure where managers can choose to withhold (i.e., redact) information from mandatory disclosure. We consider a setting where mandatory disclosure is a disaggregated disclosure (e.g., a financial statement), voluntary disclosure is an aggregate disclosure (e.g., an earnings forecast), and the costs of each type of disclosure are distinct. In this setting, we show that concerns about the proprietary cost of mandatory disclosure motivate managers to withhold information from mandatory disclosure and substitute voluntary disclosure. We test our predictions using a comprehensive sample of mandatory disclosures where the SEC allows the firm to redact information that would otherwise jeopardize its competitive position. Consistent with our predictions, we find strong evidence that redacted mandatory disclosure is associated with greater voluntary disclosure.

Download or read book Voluntary Disclosure in Corporate Control Contests evidence of Management Earnings Forecast Characteristics and Consequences written by Jinqiu Yan and published by . This book was released on 2013 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation examines how managerial incentives in contested takeovers affect voluntary disclosure strategies. I study characteristics of voluntary disclosure around contested takeovers, based on the conjecture that good news in earnings forecasts serves as a defensive strategy to resist a takeover and/or to negotiate a higher offer price. To gauge the relation of voluntary disclosure on takeover consequences, I examine the association between voluntary disclosure and target premiums as well as the length of time to resolve the acquisition. Using a difference-in-differences research design, I find that relative to friendly targets, target management in contested target firms alters the timing of normal information flows by forecasting more good news during the takeover. Managers also manipulate the content of information by releasing optimistically biased forecasts during the takeover to favorably influence the market. Further investigations indicate that target firms adopt voluntary disclosure and alter strategies at the time of contested takeover as a means to convey favorable inside information. The stock market responds positively to optimistic forecasts issued during the contested takeover. Moreover, voluntary disclosure influences contested takeovers by helping target firms negotiate better offers and postpone the M&A process. As a whole, this study demonstrates that target firms adopt voluntary disclosure and alter their strategies under the threat of contested takeover to reveal their true worth and enhance their bargaining power. Unlike prior literature that documents value-destroying managerial entrenchment resistance, voluntary disclosure by targets with favorable information induces information leakage and is one of the resistance tactics that potentially benefits target shareholders.

Download or read book On the Association Between Corporate Voluntary Disclosure and Earnings Management written by Ron Kasznik and published by . This book was released on 1995 with total page 262 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Effect of Disclosure Level on the Cost of Equitycapital written by Christine Botosan and published by . This book was released on 2000 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: A lower cost of equity capital is believed by some to be a benefit of greater voluntary disclosure. I examine this association by regressing cost of capital on beta firm size and a self-constructed disclosure index based on the level of voluntary disclosure provided by 122 manufacturing firms in their 1990 annual reports. The results suggest that for lightly followed firms greater voluntary disclosure reduces cost of equity capital. No such association is found for heavily followed firms. I obtain firm-specific cost of equity capital estimates from an accounting based valuation formula. This approach incorporates forecast data thereby yielding an estimate of expected cost of equity capital and avoiding the noise arising from ex-post deviations from expected value. The association between the cost of equity capital estimates thus obtained and market beta is positive; its correlation with market value is negative. An examination of the internal consistency of the disclosure index and its association with firm characteristics identified in prior research to be correlated with annual report disclosure level provide support for the claim that the index is a valid and reliable measure of disclosure level.

Download or read book Voluntary Disclosure in R D Intensive Industries written by Denise A. Jones and published by . This book was released on 2007 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Disclosures about R&D activities could potentially help market participants understand the future prospects of R&D intensive firms, but at the same time could be costly to make if the disclosure is related to proprietary information. I examine R&D-related disclosures made by R&D intensive firms in their annual report, as well as throughout the year to financial analysts. I find that the level of R&D-related voluntary disclosure is higher when proprietary costs are lower and when the book to market ratio is lower, perhaps because the basic financial statements are less informative about market value. In addition, after controlling for the level of general disclosure and forward looking disclosure, I find a negative relation between disclosures about development stage R&D and both analysts' one-year-ahead sales forecast error and dispersion. This is consistent with disclosures about development stage R&D reducing analyst uncertainty about one-year-ahead sales. I find mixed evidence about earnings forecasts. A higher level of disclosure about both R&D projects in progress and development stage R&D is associated with less error in analysts' one-year-ahead earnings forecasts. However, I find no evidence of a relation between R&D-related disclosure and the dispersion in one-year-ahead earnings forecasts.

Download or read book The Effect of Voluntary Disclosure on Uncertainty Around Earnings Announcements written by Thaddeus Andrew Neururer and published by . This book was released on 2016 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: