The economic rationale for the nature and extent of corporate financial disclosure regulation: A critical assessment

Cooper, Kerry; Keim, Gerald D.

doi:10.1016/0278-4254(83)90024-8

Cited by 31 publications

(36 citation statements)

References 13 publications

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“…The scoring was un-weighted, assigning a score of 1 when an index item was located in the website and a 0 when it was not located. Such a practice is quite popular in disclosure studies using an index to avoid arbitrariness (Inchausti, 1997) in the use of any weighted index and because use of such an un-weighted index will: (a) help avoid a user bias, and (b) the web-sites do not address the needs of a particular group of users but for all users (Cooke, 1989;Chow & Wong-Boren, 1987;Wang, O, & Clairborne, 2008) as a public good available to all users (Cooper & Keim, 1983). Furthermore, studies using both weighted and un-weighted indices (Chow & Wong-Boren, 1987) resulted into similar conclusions.…”

Section: Dependent Variablementioning

confidence: 99%

Web-based Disclosures and Their Determinants: Evidence from Listed Commercial Banks in Nepal

Sharma

2013

AFR

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What is the extent of disclosure, using the Internet, by commercial banks listed on Nepal Stock Exchange? What are the determinants of varying levels of web-based disclosure by those companies? These were the research questions addressed in this paper. All 23 commercial banking companies were found to have maintained their own websites and annual reports were made available in compliance with directive number 4 of Nepal Rastra Bank. A 50 items disclosure index, based on existing literature modified for Nepal specific items, was applied to company websites to assess the disclosure levels. At an average, 49.58 % of items in the index were disclosed by the commercial banks in Nepal. With regards to determinants, foreign ownership, board independence, and bank size were found to be significantly associated with web-based disclosure. The model with six independent variables considered for analysis explained 51% of the variations in web-based disclosure by commercial banks in Nepal. The study makes significant contributions to understand the extent of disclosures made by commercial banks and their determinants in a developing country like Nepal.

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Section: Dependent Variablementioning

confidence: 99%

Web-based Disclosures and Their Determinants: Evidence from Listed Commercial Banks in Nepal

Sharma

2013

AFR

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“…The extent, and especially the convenience, of any accounting regulation system should be carefully determined by means of an empirical cost-benefit analysis, as authors generally point out (Demski & Feltham, 1976;Cooper & Keim, 1983;Scott, 2003;Wolk et al, 2012). In this regard, Watts and Zimmerman (1986, p. 178) accurately stated that, "(…) There is no clear justification for corporate disclosure regulation.…”

Section: Discussionmentioning

confidence: 99%

“…Despite the fact that the two approaches appear to be antithetical, they are actually interdependent, since they both envisage a regulatory activity based on public interest evaluations in terms of efficiency and equality, respectively (Cooper & Keim, 1983).…”

mentioning

confidence: 99%

“…Due to its features, accounting information (and information in general) cannot be placed among public goods (Godenes & Dopuch, 1974;May & Sundem, 1976;Solomons, 1983;Healy & Palepu, 2001). Therefore, supporters of this theory argue that companies should be required to disclose at least a small amount of such information, in order to prevent its "underproduction" and increase the whole community's trust in the capital market (Cooper & Keim, 1983).…”

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confidence: 99%

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The “Production” of Accounting Information Between Regulatory and Free Market Approach: An (Eternally) Open Issue

Sorrentino¹,

Cossu²,

Smarra³

2015

JMAA

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Accounting information has gained utmost importance over the years, and it now plays a vital role in our society.Indeed, the trends of a global economy, especially one relying on a capital market-based financial system, are greatly influenced by reliable accounting information. However, it is sometimes difficult to assess the "reliability" of such information, given the clear differences in the needs and goals of its different users. In this respect, the possible ways to guarantee the appropriateness of the accounting information provided to users doubtlessly deserve a careful investigation. The second half of the 1970s can be considered as the starting point of a debate, within the Anglo-Saxon accounting literature, concerning the most effective methods to provide users with accounting data effectively meeting their very specific needs. In this context, two antithetical schools of thought developed:(1) free market approach; and (2) regulatory approach. Although it is possible to state that accounting regulation has now become a concrete reality both inside and outside the Anglo-Saxon accounting context, after more than half a century, its efficacy is still an open issue.

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“…Some authors have suggested that this problem is applicable to accounting information (see , for example, Gonedes et al (1976), Beaver (1977), Gonedes (1978), Foster (1980), and Cooper and Keim (1983)). Accounting regulation may be justified on the grounds that information asymmetry may lead to adverse selection, moral hazard and signalling behaviour.…”

Section: Market Failure Arguments For Accounting Regulationmentioning

confidence: 99%

Economic aspects of audit regulation and auditor liability

Willekens

1996

European Accounting Review

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The economic rationale for the nature and extent of corporate financial disclosure regulation: A critical assessment

Cited by 31 publications

References 13 publications

Web-based Disclosures and Their Determinants: Evidence from Listed Commercial Banks in Nepal

Web-based Disclosures and Their Determinants: Evidence from Listed Commercial Banks in Nepal

The “Production” of Accounting Information Between Regulatory and Free Market Approach: An (Eternally) Open Issue

Economic aspects of audit regulation and auditor liability

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