The Informational Effects of Tightening Oil and Gas Disclosure Rules

• 成果类型: Article
• 署名作者: Badia, Marc; Duro, Miguel; Jorgensen, Bjorn N.; Ormazabal, Gaizka
• 署名单位: University of Navarra; IESE Business School; University of London; London School Economics & Political Science
• 刊物名称: CONTEMPORARY ACCOUNTING RESEARCH
• ISSN/ISSBN: 0823-9150
• DOI: 10.1111/1911-3846.12572
• 发表日期: 2020
• 页码: 1720-1755
• 关键词: accounting standards; VALUE RELEVANCE; MARKET; IMPACT; ask; uncertainty; components; asymmetry; valuation; cost

摘要

We exploit two regulatory shocks to examine the informational effects of tightening preexisting mandatory disclosure rules. Canadian National Instrument 51-101 in 2003 and the U.S. rule Modernization of Oil and Gas Reporting in 2009 introduced quasi-identical amendments which effectively tightened the rules governing oil and gas reserve disclosures in both countries. We document significant changes in firms' reporting outcomes when the new regulations are introduced. We also find that the reserve disclosures filed under the new regulations are more closely associated with stock price changes and with decreases in bid-ask spreads. Our findings are robust to controlling for other confounding factors such as time trends, other information disclosed simultaneously, financial reporting incentives, mispricing, and monitoring efforts.