Political connections and voluntary disclosure: Evidence from around the world

• 成果类型: Article
• 署名作者: Hung, Mingyi; Kim, Yongtae; Li, Siqi
• 署名单位: Hong Kong University of Science & Technology; Santa Clara University
• 刊物名称: JOURNAL OF INTERNATIONAL BUSINESS STUDIES
• ISSN/ISSBN: 0047-2506
• DOI: 10.1057/s41267-017-0139-z
• 发表日期: 2018
• 页码: 272-302
• 关键词: Cross-country study; disclosure theories; political connections; voluntary disclosure

摘要

Motivated by the international business literature that examines the interactions between political forces and business environments, we investigate whether and how political connections affect managers' voluntary disclosure choices. We show that compared to non-connected firms, connected firms issue fewer management earnings forecasts. In addition, relative to non-connected firms, connected firms have a greater increase in the frequency of management forecasts subsequent to the elections that damage their political ties. Further analyses suggest that lack of capital market incentives, reduced litigation risk, and lower proprietary costs shape politically connected firms' unique voluntary disclosure choices.