Industry concentration and corporate disclosure policy

• 成果类型: Article
• 署名作者: Ali, Ashiq; Klasa, Sandy; Yeung, Eric
• 署名单位: University of Texas System; University of Texas Dallas; University of Arizona; Cornell University
• 刊物名称: JOURNAL OF ACCOUNTING & ECONOMICS
• ISSN/ISSBN: 0165-4101
• DOI: 10.1016/j.jacceco.2014.08.004
• 发表日期: 2014
• 关键词: MANAGEMENT EARNINGS FORECASTS; product market behavior; empirical-analysis; capital structure; discretionary disclosure; institutional investors; Information environment; PROPRIETARY COSTS; COMPETITION; association

摘要

This study examines the association between U.S. Census industry concentration measures and the informativeness of corporate disclosure policy. We find that in more concentrated industries firms' management earnings forecasts are less frequent and have shorter horizons, their disclosure ratings by analysts are lower, and they have more opaque information environments, as measured by the properties of analysts' earnings forecasts. Also, when these firms raise funds they prefer private placements, which have minimal SEC-mandated disclosure requirements, over seasoned equity offerings. Overall, our findings suggest that firms in more concentrated industries disclose less and avoid certain financing decisions that have non-trivial disclosure implications, presumably due to proprietary costs of disclosure. (C) 2014 Elsevier B.V. All rights reserved.