Proprietary Costs and the Disclosure of Information About Customers

Ellis, Jesse A.; Fee, C. Edward; Thomas, Shawn

doi:10.1111/j.1475-679x.2012.00441.x

Cited by 398 publications

(170 citation statements)

References 78 publications

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“…For example, this prediction is derived analytically byDarrough (1993) andVerrecchia (1983Verrecchia ( , 1990, and supported empirically byCampbell (1979) andEllis, Fee, and Thomas (2012), among others.…”

mentioning

confidence: 64%

Who Writes the News? Corporate Press Releases during Merger Negotiations

Ahern

Sosyura

2014

The Journal of Finance

381

120

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Firms have an incentive to manage media coverage to influence their stock prices during important corporate events. Using comprehensive data on media coverage and merger negotiations, we find that bidders in stock mergers originate substantially more news stories after the start of merger negotiations, but before the public announcement. This strategy generates a short-lived run-up in bidders' stock prices during the period when the stock exchange ratio is determined, which substantially impacts the takeover price. Our results demonstrate that the timing and content of financial media coverage may be biased by firms seeking to manipulate their stock price.

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mentioning

confidence: 64%

Who Writes the News? Corporate Press Releases during Merger Negotiations

Ahern

Sosyura

2014

The Journal of Finance

381

120

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“…Botosan and Stanford (2005) found that firms with higher proprietary costs are less likely to report detailed segment information voluntarily. Later, Verechia and Weber (2006) and Ellis et al (2012) observed this relationship for filings detailing material contracts and for customer disclosure, respectively.…”

Section: Board Independence and Shareholders' Interest: Research Hypomentioning

confidence: 84%

“…Higher values of abnormal profit persistence imply a lower level of competition because if the correlation is high, it implies that abnormal profits tend to be sticky over time and converge to normal rates of return more slowly. In contrast, a low correlation implies that abnormal profits quickly converge to 0 for firms in an industry and that the industry is more competitive (Ellis et al, 2012).…”

mentioning

confidence: 98%

Independent Directors and CSR Disclosures: The moderating effects of proprietary costs

García‐Sánchez¹,

Martínez‐Ferrero²

2016

Corp Soc Responsibility Env

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The aim of this paper is two-fold: (i) to evidence if the role of independent directors regarding the disclosure of corporate social responsibility (CSR) information is determined by the aim of protecting shareholders' value; and (ii) to highlight whether non-executive directors only have incentives to disclose this information when it does not damage ownerships' interest, being a trade-off between the benefits of reducing the information asymmetry in capital markets and the cost of aiding competitors by revealing proprietary information. From an international sample from 2004 to 2010, we proposed several Tobit regressions for panel data. This research evidences that independent directors show an initial opposition to CSR disclosure practices except in firms with a higher yearly cost of equity capital and lower proprietary costs. Moreover, this opposition is avoiding if there is an assurance statement that reduces their reputation risks associated with potential misleading CSR information.EIRIS is a leading global provider of independent research into the environmental, social and governance (ESG) performance of companies. EIRIS is an independent research organization serving investors that provides non-financial information on company environmental, social and ethical policy and practice. It provides comprehensive research on over 3,000 companies globally. It offers consistent, comparable data on over 110 different ESG areas, including board practice, bribery and corruption, managing environmental and climate change impacts, human rights and supply chain labour standardssee more at: http://www.eiris.org/

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“…Given the complex nature of the theory and measurement of industry concentration, we draw no inference from this result. 26 Consistent with Ellis, Fee, and Thomas [2012], firms disclose more before SEO announcements. However, the coefficient on M&A announcement is positive and somewhat unexpected.…”

Section: T a B L E 2 Idd And Nondisclosure Of Customer Informationmentioning

confidence: 86%

Trade Secrets Law and Corporate Disclosure: Causal Evidence on the Proprietary Cost Hypothesis

Lin

Zhang

2017

J of Accounting Research

245

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This study exploits the staggered adoption of the inevitable disclosure doctrine (IDD) by U.S. state courts as an exogenous shock that generates variations in the proprietary costs of disclosure. We find that firms respond to IDD adoption by reducing the level of disclosure regarding their customers' identities, supporting the proprietary cost hypothesis. Our results are stronger for firms in industries with a higher degree of entry threats, for firms in more volatile industries, and for firms with a lower degree of external financing dependence. Overall, this study represents one of the first efforts in identifying the causal effect of proprietary costs of disclosure on the supply of disclosure. JEL codes: D82; D83; K11; L1; M41

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Proprietary Costs and the Disclosure of Information About Customers

Cited by 398 publications

References 78 publications

Who Writes the News? Corporate Press Releases during Merger Negotiations

Who Writes the News? Corporate Press Releases during Merger Negotiations

Independent Directors and CSR Disclosures: The moderating effects of proprietary costs

Trade Secrets Law and Corporate Disclosure: Causal Evidence on the Proprietary Cost Hypothesis

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