Mandatory disclosure and asymmetry in financial reporting

• 成果类型: Article
• 署名作者: Bertomeu, Jeremy; Magee, Robert P.
• 署名单位: City University of New York (CUNY) System; Baruch College (CUNY); Northwestern University
• 刊物名称: JOURNAL OF ACCOUNTING & ECONOMICS
• ISSN/ISSBN: 0165-4101
• DOI: 10.1016/j.jacceco.2014.08.007
• 发表日期: 2015
• 关键词: economic consequences; positive theory; QUALITY; INFORMATION; MARKET; ACT

摘要

This paper examines the demand for disclosure rules by informed managers interested in increasing the market price of their firms. Within a model of political influence, a majority of managers chooses disclosure rules with which all firms must comply. In equilibrium, disclosure rules are asymmetric with greater levels of disclosure over adverse events. This asymmetry is positively associated with the informativeness of the measurement and increasing in the level of verifiability and ex-ante uncertainty of the information. The theory also offers implications about the relation between mandatory and voluntary disclosure, when both channels are endogenous. (C) 2014 The Authors. Published by Elsevier B.V.