The Impact of Performance Reporting on Investment Behavior: Evidence from Disclosure Reform in the UK

• 成果类型: Article
• 署名作者: Park, Gitae
• 署名单位: City St Georges, University of London
• 刊物名称: ACCOUNTING REVIEW
• ISSN/ISSBN: 0001-4826
• DOI: 10.2308/TAR-2021-0863
• 发表日期: 2024
• 页码: 427-453
• 关键词: institutional investors; capital-market; cheap talk; corporate; INFORMATION; identification; CONSEQUENCES; relevance; frequency

摘要

I examine the real effects of a disclosure mandate that, with the aim of enhancing performance reporting, requires a subset of London Stock Exchange (LSE) firms to describe operational and strategic aspects of value creation, such as business operations and strategies, in their annual reports. Using an instrumented differencein -differences design, I find that compliance with this initiative, evidenced by more disclosures of performance measures and commentaries relating to business operations and strategies, promotes intangible investments. My analysis of external and internal control systems suggests that enhanced performance reporting promotes investments because it attracts long-term investors and reduces CEO pay sensitivity to earnings performance.