The Joint Effects of Materiality Thresholds and Voluntary Disclosure Incentives on Firms' Disclosure Decisions

Heitzman, Shane; Wasley, Charles E.; Zimmerman, Jerold L.

doi:10.2139/ssrn.1069382

Cited by 54 publications

(79 citation statements)

References 64 publications

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“…For the former category, our findings add new evidence to previous research on corporate disclosure, confirming that an organization's decision to improve its level of communication and transparency towards the market (in this case, releasing an IR) affects the shareholders' expectations about that organization's performance-see [20]. Moreover, this study contributes to validating the "vital" function of materiality in the corporate disclosure process [60], since the impact registered on the organizations' share prices assumes that the IR analyzed includes all material information on the process of value creation implemented [21,22].…”

Section: Resultsmentioning

confidence: 93%

“…Some scholars have specifically explained the organizations' decision to extend the disclosure level beyond the mandatory requirements with considerations related to the concept of materiality [21,22], as better specified in the next section.…”

Section: Corporate Disclosure and Capital Markets: A Brief Literaturementioning

confidence: 99%

“…Unfortunately, few studies in the literature have included the impact of materiality in their analysis of corporate disclosure [21,22], justifying the development of further studies characterized by the inclusion of such a relevant variable.…”

Section: Disclosing Materials Information: the Hypotheses Developmentmentioning

confidence: 99%

“…Unfortunately, some of these studies include measurement errors that affect the interpretation of results, hence requiring further investigation on the topic [20]. Moreover, few studies have included in their analysis the concept of materiality and the necessity of relating the impact on the capital markets to the disclosure of material information [21,22].…”

Section: Introductionmentioning

confidence: 99%

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Corporate Disclosure, Materiality, and Integrated Report: An Event Study Analysis

2017

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Within the extensive literature investigating the impacts of corporate disclosure in supporting the sustainable growth of an organization, few studies have included in the analysis the materiality issue referred to the information being disclosed. This article aims to address this gap, exploring the effect produced on capital markets by the publication of a recent corporate reporting tool, Integrated Report (IR). The features of this tool are that it aims to represent the multidimensional impact of the organization's activity and assumes materiality as a guiding principle of the report drafting. Adopting the event study methodology associated with a statistical significance test for categorical data, our results verify that an organization's release of IR is able to produce a statistically significant impact on the related share prices. Moreover, the term "integrated" assigned to the reports plays a significant role in the impact on capital markets. Our findings have beneficial implications for both researchers and practitioners, adding new evidence for the IR usefulness as a corporate disclosure tool and the effect of an organization's decision to disclose material information.

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Section: Resultsmentioning

confidence: 93%

Section: Corporate Disclosure and Capital Markets: A Brief Literaturementioning

confidence: 99%

Section: Disclosing Materials Information: the Hypotheses Developmentmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Corporate Disclosure, Materiality, and Integrated Report: An Event Study Analysis

2017

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“…Botosan and Harris, 2000 Cohen, 2002Ettredge et al, 2002Leuz, 2004Graham et al, 2005Jin , 2005 Botosan and Stanfod, 2005 Shin 2002 Verrecchia and Weber, 2006 Nichols and Street, 2007Berger and Hann, 2007Dedman and Lennox, 2009Heitzman et al, 2010Ali et al, 2009 Supports the hypothesis Rejects the hypothesis Verrecchia, 1983Mautz, 1968 Hypothesis:…”

Section: Related Literaturementioning

confidence: 91%

Evolutionary Model of Existing Competition and Voluntary Disclosure

Nickel

Gago‐Rodríguez

2010

SSRN Journal

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We analyze how, in the absence of capital market incentives, the influence of existing competition on voluntary disclosure is an evolving process which has a non-monotonic design.The progressive capability of rivals to forecast significant information and the increasing losses of abnormal profits during the industry life cycle generate fears and incentives that change the sign of the relationship between competition and the probability of voluntary disclosure throughout the industry's development. We support this new design empirically by applying a semi-parametric Cox model to 28 years of archival data for the entire Spanish newspaper sector.We also find that the best fitting model is the first harmonic of a Fourier series.

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Determinants of Conflict Minerals Disclosure Under the Dodd–Frank Act

Via

Perego

2018

Bus Strat Env

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This paper examines conflict minerals disclosure (CMD) as mandated by the Dodd-Frank Act. We rely on a thorough content analysis conducted by the Responsible Sourcing Network on a sample of 122 firms that filed CMDs with the US Securities and Exchange Commission in 2015. We document that firms with long-term oriented incentives, a greater number of board meetings, strong corporate governance systems and inclusion in a sustainability index are associated with higher levels of CMD. Our results suggest that in the presence of enforcement leniency, both internal and external firm-specific factors affect strategic (non-)compliance with a mandatory social disclosure regime. We provide implications for supply chain managers, corporate reporters and policy-makers involved in the adoption of responsible sourcing strategies.

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The Joint Effects of Materiality Thresholds and Voluntary Disclosure Incentives on Firms' Disclosure Decisions

Cited by 54 publications

References 64 publications

Corporate Disclosure, Materiality, and Integrated Report: An Event Study Analysis

Corporate Disclosure, Materiality, and Integrated Report: An Event Study Analysis

Evolutionary Model of Existing Competition and Voluntary Disclosure

Determinants of Conflict Minerals Disclosure Under the Dodd–Frank Act

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