Disclosure and Determinants Studies: An Extension Using the Divisive Clustering Method (Div)

41 Pages Posted: 15 Dec 2005

See all articles by Marie Chavent

Marie Chavent

Université Bordeaux 1

Yuan Ding

China Europe International Business School (CEIBS)

Linghui Fu

Beihang University (BUAA)

Hervé Stolowy

HEC Paris - Accounting and Management Control Department

Huiwen Wang

Beihang University (BUAA)

Date Written: July 2005

Abstract

Past accounting research contains an extensive range of disclosure and determinants studies. But these studies have one major methodological drawback: the disclosure analysis is often restricted to determination of the disclosure index, i.e. the sum of disclosed items, weighted or unweighted. The disclosure profile (which reflects the structure of published information) is generally not part of the research design. The objective of this paper is to introduce a divisive (descendant) clustering method, which splits the sample into homogeneous sub-groups corresponding to disclosure patterns (or profiles), for clearer determination of the financial characteristics of each group. This methodology is illustrated by a study of disclosure on provisions by large French firms. The results show that the disclosure pattern is related to provision intensity, size, leverage and market expectation, but not to profit, return and industry. This new research method is a valuable complementary tool for expanding on disclosure and determinants studies, moving from disclosure levels to disclosure patterns.

Keywords: Disclosure, Determinants, Provisions, France, Size, Clustering method

JEL Classification: M41, M45, M47

Suggested Citation

Chavent, Marie and Ding, Yuan and Fu, Linghui and Stolowy, Hervé and Wang, Huiwen, Disclosure and Determinants Studies: An Extension Using the Divisive Clustering Method (Div) (July 2005). Available at SSRN: https://ssrn.com/abstract=869924 or http://dx.doi.org/10.2139/ssrn.869924

Marie Chavent

Université Bordeaux 1 ( email )

351 cours de la Libération
33405 TALENCE cedex
France

Yuan Ding

China Europe International Business School (CEIBS) ( email )

699, Hongfeng Road
Shanghai 201206, Shanghai 201206
China

Linghui Fu

Beihang University (BUAA)

37 Xue Yuan Road
Beijing 100083
China

Hervé Stolowy (Contact Author)

HEC Paris - Accounting and Management Control Department ( email )

Jouy-en-Josas Cedex
France
+33 1 39 67 94 42 (Phone)
+33 1 39 67 70 86 (Fax)

HOME PAGE: http://www.hec.fr/stolowy

Huiwen Wang

Beihang University (BUAA)

37 Xue Yuan Road
Beijing 100083
China

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