Essays on Disclosure

Verrecchia, Robert E.

doi:10.2139/ssrn.276699

Cited by 852 publications

(1,379 citation statements)

References 108 publications

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“…From an economics perspective, producing objective 1 environmental (E) and social (S) disclosures entail real, proprietary, and opportunity costs (Verrecchia, 1983(Verrecchia, , 2001Li & McConomy, 1999;Cormier & Magnan, 1999, 2003Buhr, 2002;Brammer & Pavelin, 2006Armitage & Marston, 2008). Yet, E and S disclosures by large listed companies in the UK (as in many countries around the world, Gray Javad, Power & Sinclair, 2001) have grown phenomenally over the years, rising from approximately a page devoted to employee related disclosure in the 1970s (Gray, Kouhy & Lavers, 1995, p. 62) to detailed stand-alone sustainability reports issued by many listed companies in recent years.…”

Section: Introductionmentioning

confidence: 99%

Environmental and social disclosures: Link with corporate financial performance

Qiu

Shaukat

Tharyan

2016

The British Accounting Review

655

483

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Abstract:Environmental and social disclosures entail costs, yet increasingly, large listed firms are making higher and better quality disclosures. In this paper we examine the link between a firm's environmental and social disclosures and its profitability and market value. We find that past profitability drives current social disclosures. However, consistent with the existing evidence, we do not find any relation between environmental disclosures and profitability. Further, while prior literature has largely focussed on environmental disclosure, we find that it is the social disclosures that matter to investors. We find that firms that make higher social disclosures have higher market values. Further analysis reveals that this link is driven by higher expected growth rates in the cash flows of such companies. Overall our findings are consistent with the resource based view of the firm and the voluntary disclosure theory, suggesting that firms with greater economic resources make more extensive disclosures which yield net positive economic benefits.

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Section: Introductionmentioning

confidence: 99%

Environmental and social disclosures: Link with corporate financial performance

Qiu

Shaukat

Tharyan

2016

The British Accounting Review

655

483

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“…Instead, HCD is only made voluntarily and can be found interspersed throughout annual reports. As long as the information disclosed in annual reports pertains to human capital, such information can be classified as HCD. In general terms, the intent of such disclosure is to provide relevant information for related users to satisfy the need that enhances decision-making and accountability (Guthrie & Petty 2000;Verrecchia 2001). In particular, HCD is the information on the knowledge, capabilities, and motivation of the workforce that a company discloses.…”

Section: Introductionmentioning

confidence: 99%

Relationship between Unionized Companies, Government Ownership and Reporting Human Capital Information in Corporate Annual Reports

Rahman¹,

Ahmed²,

Hassan³

2017

AJAG

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“…Verrecchia (2001) introduced a classification of research models for understanding the phenomenon of accounting information disclosure. In this way, the author's taxonomy suggests three research categories on the subject: (i) association-based disclosure, which consists…”

Section: The Disclosure Theorymentioning

confidence: 99%

“…Salotti and Yamamoto (2008), in turn, investigated accounting information disclosure from the viewpoint of the second research line proposed by Verrecchia (2001), i.e. the motives or incentives that influenced certain companies to disclose their respective cash flow statements (CFS) were addressed.…”

Section: Tablementioning

confidence: 99%

“…Lima (2009) inferred about disclosure based on effectiveness by referring the disclosure behavior to the cost of third-party capital in the Brazilian listed companies. According to Verrecchia (2001), among the studies associating effectiveness with disclosure, both in the context of welfare and efficiency for the firm, the one showing the greatest potential associates disclosure with reduced information asymmetry. Initially, the studies by Leuz and Verrecchia (2000) analyzed the relationship between disclosure and reduced information asymmetry and the cost of capital for companies, and they still have not confirmed a significant relationship, at least in the U.S. On the other hand, tests performed in Germany already brought a significant effect on reduced capital cost.…”

Section: Tablementioning

confidence: 99%

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Adoção do Padrão Contábil Internacional nas Pequenas e Médias Empresas e seus Efeitos na Concessão de Crédito

Riva

Salotti

2015

Rev. contab. finanç.

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This research examines the relationship between the adoption of the international accounting standard by small and medium-sized entities in Brazil and the cost of credit granted by financial institutions. The literature about this subject discusses accounting regulation as a response to the existence of environments having information asymmetry and the Disclosure Theory studies the phenomenon of accounting disclosure, from the viewpoint of its causes and effects. The International Accounting Standards Board (IASB) suggests that an accounting standard with higher information quality tends to reduce the funding cost for small enterprises and, thus, this paper has as its main aim investigating whether the adoption of the international accounting standard has caused some effect on the cost of banking credit. The investigation was conducted through a theoretical and empirical approach, where the statistical analyses involved a sample of 179 enterprises subject to the Brazilian Technical PronouncementAccounting for Small and Medium-Sized Entities (CPC-SMEs), which underwent descriptive analysis, sample means testing, panel data analysis, and quantile regressions, with data from financial statements for three years (2009 to 2011). Evidence suggests a weak association between measures of the accounting information quality (disclosure and exposure of the adoption of the accounting standard based on the CPC) and the cost of banking credit for these enterprises. However, such evidence did not prove to be consistent over time and, furthermore, through regression analysis, the variables were not significant. So, it is possible to observe only a slight influence of accounting information in the sector under analysis, at least at this very first moment of changes in the accounting standards, on the cost of banking credit. Thus, this study contributes to examine the relationship between accounting information quality and the cost of banking credit among small and medium-sized entities.

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Essays on Disclosure

Cited by 852 publications

References 108 publications

Environmental and social disclosures: Link with corporate financial performance

Environmental and social disclosures: Link with corporate financial performance

Relationship between Unionized Companies, Government Ownership and Reporting Human Capital Information in Corporate Annual Reports

Adoção do Padrão Contábil Internacional nas Pequenas e Médias Empresas e seus Efeitos na Concessão de Crédito

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