Intertemporal Dynamics of Corporate Voluntary Disclosures

Posted: 19 Mar 2008

See all articles by Eti Einhorn

Eti Einhorn

Tel Aviv University

Amir Ziv

Columbia Business School


While empirical evidence alludes to the intertemporal nature of corporate voluntary disclosures, most of the existing theory analyzes firms' voluntary disclosure decisions within single-period settings. Introducing a repeated, multi-period, disclosure setting, we study the extent to which firms' strategic disclosure behavior in the past affects their prosperity to provide voluntary disclosures in the future. Our analysis demonstrates that by voluntarily disclosing private information firms make an implicit commitment to provide similar disclosures in the future, and therefore are less willing to voluntarily disclose information in the first place. This effect is expected to be of larger magnitude for firms: (i) with a long history of absence of voluntary disclosures and an impressive past operating performance, or (ii) that operate in a relatively stable and predictable business and information environment, or (iii) whose managers have a long time horizon and a high degree of risk aversion.

Keywords: Information asymmetry, Accounting, Financial reporting, Voluntary disclosure

JEL Classification: D82, G14, M41, M45

Suggested Citation

Einhorn, Eti and Ziv, Amir, Intertemporal Dynamics of Corporate Voluntary Disclosures. Journal of Accounting Research, Vol. 46, No. 3, June 2008, Available at SSRN:

Eti Einhorn (Contact Author)

Tel Aviv University ( email )

P.O. Box 39010
Ramat Aviv, Tel Aviv, 69978

Amir Ziv

Columbia Business School ( email )

3022 Broadway, 704 Uris
New York, NY 10027 10027
United States
212 854-3485 (Phone)
212 253-4095 (Fax)

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