|
Based on your IP address, your paper is being delivered by:
|
 |
 |
 |
 |
 |
New York, USA
Processing request.
|
Illinois, USA
Processing request.
|
Brussels, Belgium
Processing request.
|
Seoul, Korea
Processing request.
|
California, USA
Processing request.
|
If you have any problems downloading this paper,
please click on another Download Location above, or
File name: SSRN-id1981672. ; Size: 179K
|
|
Voluntary Disclosure Incentives and Earnings Informativeness
Sugata Roychowdhury
Boston College
Ewa Sletten
Boston College
January 1, 2012
Accounting Review, Forthcoming
Abstract:
We propose that the value of the earnings reporting process as an information source lies in limiting delays in the release of bad news either by inducing managers to disclose it voluntarily, or by directly releasing the negative news that managers have incentives to withhold. We compare earnings’ informativeness in bad-news and good-news quarters. Using returns to measure news, we find, consistent with our prediction, that earnings’ informativeness relative to other sources is higher in bad-news quarters than in good-news quarters. Further, cross-sectional tests indicate that earnings’ differential informativeness in bad-news quarters is more pronounced when managers do not voluntarily disclose the news, information asymmetry is stronger, and managers are net sellers of stock.
Number of Pages in PDF File: 57
Keywords: earnings disclosure, earnings information, disciplinary role, managerial disclosures, voluntary disclosure, earnigs announcement returns, Sarbanes Oxley Act
JEL Classification: G3, M4, M40, M41
working papers series
Download This Paper
Date posted: August 12, 2008
; Last revised: May 25, 2012
Suggested CitationRoychowdhury, Sugata and Sletten, Ewa, Voluntary Disclosure Incentives and Earnings Informativeness (January 1, 2012). Accounting Review, Forthcoming. Available at SSRN: http://ssrn.com/abstract=1220942 or http://dx.doi.org/10.2139/ssrn.1220942
|
| Feedback to SSRN (Beta) |
|
|
People who downloaded this paper also downloaded:
1.
Economic Consequences of Financial Reporting and Disclosure Regulation: A Review and Suggestions for Future Research
By
Christian Leuz
and
Peter Wysocki
2.
The Relation Between Voluntary Disclosure and Financial Reporting: Evidence from Synthetic Leases
By
Sarah Zechman
3.
Voluntary Disclosure and Ownership Structure: An Exploratory Study of Romanian Listed Companies
By
Victoria Bogdan,
Adina Popa, ...
4.
Voluntary Disclosure Practices by Foreign Firms Cross-Listed in the United States
By
Ole-kristian Hope,
Tony Kang, ...
5.
Capital Market Consequences of Managers’ Voluntary Disclosure Styles
By
Holly Yang
6.
Capital Structure, Cost of Capital, and Voluntary Disclosures
By
Jeremy Bertomeu,
Anne Beyer, ...
7.
Information Asymmetry, Corporate Disclosure and the Capital Markets: A Review of the Empirical Disclosure Literature
By
Paul Healy
and
Krishna Palepu
8.
Large Shareholders and Disclosure Strategies: Evidence from IPO Lockup Expirations
By
Yonca Ertimur,
Ewa Sletten, ...
9.
The Effect of Board Independence on the Information Environment and Information Asymmetry
By
Beng Wee Goh,
Jeffrey Ng, ...
10.
The Impact of Voluntary Corporate Disclosures on the Ex ante Cost of Capital for Swiss Firms
By
Luzi Hail
|
|
|
|
