Essays on Disclosure

123 Pages Posted: 14 Jul 2001

See all articles by Robert E. Verrecchia

Robert E. Verrecchia

University of Pennsylvania - Accounting Department

Multiple version iconThere are 2 versions of this paper

Date Written: June 2001


In this paper I attempt a taxonomy of the extant accounting literature on disclosure and suggest as categories: "association-based disclosure," work that studies the effects of disclosure on asset equilibrium prices and trading volume; "discretionary-based disclosure," work that examines managers' discretion in the disclosure of information about which they may have knowledge; and "efficiency-based disclosure," work that discusses which disclosure arrangements are preferred in the absence of prior knowledge of the information. In addition, in the final section of the paper, I discuss information asymmetry reduction as a starting point for a comprehensive theory of disclosure.

Keywords: Disclosure; Information asymmetry reduction; Cost of capital

JEL Classification: M41, M45, D82

Suggested Citation

Verrecchia, Robert E., Essays on Disclosure (June 2001). Available at SSRN: or

Robert E. Verrecchia (Contact Author)

University of Pennsylvania - Accounting Department ( email )

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Philadelphia, PA 19104-6365
United States
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