Download or read book Voluntary Disclosure when Private Information and Disclosure Costs are Jointly Determined written by Jung Min Kim and published by . This book was released on 2020 with total page 47 pages. Available in PDF, EPUB and Kindle. Book excerpt: Classical models of voluntary disclosure feature two economic forces: the existence of an adverse selection problem (e.g., a manager possesses some private information) and the cost of ameliorating the problem (e.g., costs associated with disclosure). Traditionally these forces are modelled independently. In this paper, we use a simple model to motivate empirical predictions in a setting where these forces are jointly determined--where greater adverse selection entails greater costs of disclosure. We show that joint determination of these forces generates a pronounced non-linearity in the probability of voluntary disclosure. We find that this non-linearity is empirically descriptive of multiple measures of voluntary disclosure in two distinct empirical settings that are commonly thought to feature both private information and proprietary costs: capital investments and sales to major customers.
Download or read book The Expected Costs of Increased Disclosure Firm and Industry specific Forces written by Simon Kröger and published by GRIN Verlag. This book was released on 2020-08-05 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: Seminar paper from the year 2020 in the subject Business economics - Accounting and Taxes, grade: 1.0, Mannheim University of Applied Sciences, language: English, abstract: A series of financial crises and corporate scandals gave rise to increasing concerns about prevailing models of corporate governance and disclosure and stimulated financial disclosure and reporting regulation. As a result, there has been considerably more interest in documenting the benefits of increased disclosure than its costs. Accordingly, numerous papers purport to provide evidence of capital market benefits through incremental disclosure. At the same time, firms refrain from voluntarily committing to increased disclosure, implying that there must be a trade-off between associated benefits and costs. Consequently, critics contend that the capital market benefits are inconclusive. Instead, increased disclosure may result in adverse capital market effects through increasing information asymmetry. Moreover, critics predict that increased disclosure imposes further costs on the firm. The purpose of this seminar thesis is to review existing literature on these expected costs of increased disclosure. Thereby, I focus on controversies regarding the heavily debated capital market effects as well as on specific forces that determine proprietary and litigation costs associated with increased disclosure. While a firm’s disclosure choices likely are a joint outcome of market forces and incentives provided by regulation, the seminar thesis is limited to voluntary disclosure choices as a starting point for possible disclosure regulation. The remainder of the seminar thesis is structured as follows. Section 2 reviews the literature on the capital market effects of voluntary disclosure through its impact on information asymmetry. Section 3 discusses the ambiguous impact of voluntary disclosure on litigation and proprietary costs. Section 4 concludes the seminar thesis.
Download or read book Self enforcing Voluntary Disclosures written by Frank Barry Gigler and published by . This book was released on 1992 with total page 204 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 of Strategic Alternatives written by Jenny Zha and published by . This book was released on 2016 with total page 146 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation studies a firm's decision to voluntarily disclose that it is seeking "strategic alternatives," effectively setting out to explore the potential sale or merger of the company. Firms appear to use these voluntary disclosures to maximize shareholder value and credibly convey private information. Voluntary disclosures of strategic alternatives are associated with a three-day return of +5.8 percent on average. Compared to an entropy-balanced control group with similar characteristics in expectation, disclosing firms that are subsequently acquired experience positive abnormal takeover returns (reflecting benefits from a more favorable sale process and improved information), whereas disclosing firms that are not subsequently acquired experience negative abnormal returns (reflecting costs from more dysfunction). The existence of economically significant costs and benefits is consistent with a general voluntary disclosure framework resulting in a threshold equilibrium. The decision to seek strategic alternatives appears to be prompted by poor performance, poor information environment, and the presence of corporate governance catalysts, namely, blockholders, activists, and golden parachutes.
Download or read book Costly Voluntary Disclosure with Negative Expected Value Suits written by Amy Farmer and published by . This book was released on 2016 with total page 39 pages. Available in PDF, EPUB and Kindle. Book excerpt: A standard result in the litigation literature is that the informed party will not make a costly voluntary disclosure in a screening game. We develop a screening game in which an uninformed plaintiff makes an offer to an informed defendant. Under the American rule for the allocation of trial costs, we find that the defendant will make a costly voluntary disclosure if he can demonstrate to the plaintiff that she has a negative expected value suit. By doing so, the defendant can induce the plaintiff to drop the lawsuit. This assumes the cost of a voluntary disclosure is less than the cost of a full trial to the defendant. As a result of the information disclosure, the model will never exhibit the type of constrained equilibrium described by Nalebuff (1987). By contrast, under the English rule some defendants with a very high probability of prevailing at trial will not disclose their private information and the type of constrained equilibrium described by Nalebuff remains possible.
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 International Accounting and Multinational Enterprises written by Lee H. Radebaugh and published by John Wiley & Sons. This book was released on 2006-01-04 with total page 520 pages. Available in PDF, EPUB and Kindle. Book excerpt: This text presents international accounting within the context of managing multinational enterprises, focusing on business strategies and how accounting applies to these strategies. This unique approach gives students the opportunity to learn about international accounting from a perspective similar to what they will experience in the business world. The book explains the key factors that influence accounting standards and practices in different countires, and how those factors impact the convergence of standards worldwide. Particular emphasis is given to culture and its unique contribution to accounting standards and practices worldwide. The book focuses on the needs of users of financial and accounting information across borders with the aim of enhancing their understanding of how to use information and make more informed decisions in an increasingly complex and dynamic international business environment.
Download or read book Model Rules of Professional Conduct written by American Bar Association. House of Delegates and published by American Bar Association. This book was released on 2007 with total page 216 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Model Rules of Professional Conduct provides an up-to-date resource for information on legal ethics. Federal, state and local courts in all jurisdictions look to the Rules for guidance in solving lawyer malpractice cases, disciplinary actions, disqualification issues, sanctions questions and much more. In this volume, black-letter Rules of Professional Conduct are followed by numbered Comments that explain each Rule's purpose and provide suggestions for its practical application. The Rules will help you identify proper conduct in a variety of given situations, review those instances where discretionary action is possible, and define the nature of the relationship between you and your clients, colleagues and the courts.
Download or read book Business Sustainability written by Zabihollah Rezaee and published by Routledge. This book was released on 2017-09-08 with total page 257 pages. Available in PDF, EPUB and Kindle. Book excerpt: Business sustainability has advanced from greenwashing and branding to being a business imperative. Stakeholders, including shareholders, demand, regulators require, and companies now need to report their sustainability performance. No longer is this a choice for businesses. A decade ago, fewer than 50 companies released sustainability reports, and now more 8,000 global public companies disclose sustainability performance information on some or all five economic, governance, social, ethical, and environmental (EGSEE) dimensions of sustainability performance, and this trend is expected to continue. Indeed, more than 6,000 European public companies would be required to disclose their environmental, social, governance and diversity information for their 2017 reporting year. However, the proper determination of sustainability performance, accurate and reliable reporting and independent assurance of sustainability information remain major challenges for organizations of all types and sizes. Through reading this book, you will: Identify sustainability strategies to create innovation in new products, services, energy-efficiency, environmental facilities and green initiatives. Understand the role and responsibilities of all participants in the corporate reporting process, including directors, officers, internal auditors, external auditors, legal counsel, and investors. See ways to improve public trust, investor confidence, business reputation, employee satisfaction, corporate culture, social responsibility and environmental performance. Learn all five economic, governance, social, ethical and environmental (EGSEE) dimensions of sustainability performance separately and their integrated and interactive effects on achieving the goal of creating sustainable value for all stakeholders, including shareholders. Learn how to adopt best practices in sustainability development and performance, and deliver effective integrated sustainability reporting and assurance.
Download or read book Oxford Handbook of Internet Psychology written by Adam Joinson and published by OUP Oxford. This book was released on 2009-02-12 with total page 520 pages. Available in PDF, EPUB and Kindle. Book excerpt: Over one billion people use the Internet globally. Psychologists are beginning to understand what people do online, and the impact being online has on behaviour. It's making us re-think many of our existing assumptions about what it means to be a social being. For instance, if we can talk, flirt, meet people and fall in love online, this challenges many of psychology's theories that intimacy or understanding requires physical co-presence. "The Oxford Handbook of Internet Psychology" brings together many of the leading researchers in what can be termed 'Internet Psychology'. Though a very new area of research, it is growing at a phenomenal pace. In addition to well-studied areas of investigation, such as social identity theory, computer-mediated communication and virtual communities, the volume also includes chapters on topics as diverse as deception and misrepresentation, attitude change and persuasion online, Internet addiction, online relationships, privacy and trust, health and leisure use of the Internet, and the nature of interactivity. With over 30 chapters written by experts in the field, the range and depth of coverage is unequalled, and serves to define this emerging area of research. Uniquely, this content is supported by an entire section covering the use of the Internet as a research tool, including qualitative and quantitative methods, online survey design, personality testing, ethics, and technological and design issues. While it is likely to be a popular research resource to be 'dipped into', as a whole volume it is coherent and compelling enough to act as a single text book. "The Oxford Handbook of Internet Psychology" is the definitive text on this burgeoning field. It will be an essential resource for anyone interested in the psychological aspects of Internet use, or planning to conduct research using the 'net'.
Download or read book Ethics and Sustainability in Accounting and Finance Volume III written by Kıymet Tunca Çalıyurt and published by Springer Nature. This book was released on 2021-10-04 with total page 344 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book continues the discussion on recent developments relating to ethical and sustainable issues in accounting and finance from the book , Volumes I and II, looking into topics such as the importance of good governance in accounting, tax, auditing and fraud examination, ethics, sustainability, environmental issues and new technologies and their effects on accounting and finance, focusing in particular on environmental and sustainability reporting in the oil and gas and banking sectors. The book also considers the growing importance of audit quality in this time of the COVID-19 pandemic.
Download or read book Written Comments on Joint Committee on Taxation Disclosure Study written by United States. Congress. House. Committee on Ways and Means and published by . This book was released on 2000 with total page 104 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Michigan Court Rules written by Kelly Stephen Searl and published by . This book was released on 1922 with total page 520 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Irreversibility Uncertainty and Investment written by Robert S. Pindyck and published by World Bank Publications. This book was released on 1989 with total page 58 pages. Available in PDF, EPUB and Kindle. Book excerpt: Irreversible investment is especially sensitive to such risk factors as volatile exchange rates and uncertainty about tariff structures and future cash flows. If the goal of macroeconomic policy is to stimulate investment, stability and credibility may be more important than tax incentives or interest rates.
Download or read book Accounting in Emerging Economies written by Mathew Tsamenyi and published by Emerald Group Publishing. This book was released on 2009-11-19 with total page 397 pages. Available in PDF, EPUB and Kindle. Book excerpt: Accounting research in emerging economies has grown over the years. This title includes articles that contribute to our understanding of how accounting functions in emerging economies.
Download or read book Food and Drug Administration Practice and Procedure 1975 Joint Hearings Before the Subcommittee on Health and the Subcommittee on Administrative Practice and Procedure Of 94 1 Jan 28 and 29 1975 written by United States. Congress. Senate. Committee on Labor and Public Welfare and published by . This book was released on 1975 with total page 500 pages. Available in PDF, EPUB and Kindle. Book excerpt:
