Segment Disclosure Quantity and Quality under IFRS 8: Determinants and the Effect on Financial Analysts' Earnings Forecast Errors

André, Paúl; Filip, Andrei; Moldovan, Rucsandra

doi:10.1016/j.intacc.2016.10.008

Cited by 47 publications

(93 citation statements)

References 74 publications

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“…By using a sample from Europe, André, Filip, and Moldovan (2016) supported the agency cost proposition, but only when comparing under-disclosers with box-ticker groups. 9 Similarly, we intend to provide insights into the role of the agency motive after the introduction of IFRS 8 by using a sample from the EU covering 4 successive years, which contrasts with the majority of similar research conducted using US data.…”

Section: Segmental Disclosures and Agency Costmentioning

confidence: 96%

“…By contrast, the standard requires the disclosure of sales and noncurrent assets by an individual country, but only when an individual country is material, which again suggests greater discretion and flexibility under IFRS 8. André, Filip, and Moldovan (2016) examined the determinants of segment disclosure quantity and quality under IFRS 8 and found support for the proprietary cost motive. Nevertheless, their study covers only 1 year of data and ignores the managers' incentives in pre-IFRS 8.…”

Section: Effect Of Ifrs 8 On the Explanatory Power Of Proprietary Andmentioning

confidence: 99%

“…Managers may decide to report segment information broadly to avoid competitive harm (proprietary costs) or to preclude or combine segments to avoid monitoring or accomplish personal benefits (agency costs) (i.e. André, Filip, & Moldovan, 2016;Bens, Berger & Monahan 2011;Botosan & Harris, 2000;Harris, 1998). This study addresses segment disclosure choices in the European Union (EU) context; notably, most of the related research has been conducted in the context of the United States (US) (Nichols, Street, & Tarca, 2013).…”

Section: Introductionmentioning

confidence: 99%

“…Hope, Ma and Thomas (2013) and Akamah, Hope and Thomas (2018) have indicated that managers use the vague country-level materiality guidelines to aggregate geographic disclosures and mask tax-avoidance practices. André, Filip, and Moldovan (2016) examined the incentives of segment disclosure quantity and quality under IFRS 8 and found support for the proprietary cost motive; André, Filip, and Moldovan (2016) used the cross-segment variability in return; 6 and our study uses the geographical disaggregation characteristic to measure the quality dimension and, in particular, the disaggregation of sales information on a country basis. The disclosure of sales information on an individual country basis represents the highest possible level of disaggregation and provides information regarding specific sources of risk and returns that enable users to differentiate between potential risk, return, and growth prospects (Doupnik & Seese, 2001;Aboud, Roberts & Zalata, 2018).…”

Section: Introductionmentioning

confidence: 99%

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Managers’ segment disclosure choices under IFRS 8: EU evidence

Aboud

Roberts

2018

Accounting Forum

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We examine the impact of proprietary and agency cost motives on segment disclosure quality and quantity and how the adoption of the principle IFRS 8 affects this impact. By using hand-collected data, our results show that proprietary and agency costs play a relevant role in determining the quality and quantity of segment disclosure. We find that proprietary costs are a particularly relevant reason for providing lower segment disclosure quality post-IFRS 8. Our results also suggest that firms' segment disclosure choice is dependent on disclosure dimension. These results contribute to the ongoing debate regarding IFRS 8 and have valuable implications for accounting regulators.

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Section: Segmental Disclosures and Agency Costmentioning

confidence: 96%

Section: Effect Of Ifrs 8 On the Explanatory Power Of Proprietary Andmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Managers’ segment disclosure choices under IFRS 8: EU evidence

Aboud

Roberts

2018

Accounting Forum

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“…Portanto, a análise por segmentos pode alterar a percepção sobre a realidade econômica das empresas (André et al, 2016). Pode-se, por exemplo, identicar os segmentos que têm melhor lucratividade e/ou melhor rentabilidade, bem como qual é a participação de cada um desses segmentos no total de atividades da empresa.…”

Section: Análises Das Demonstrações Contábeis Utilizando Indicadores unclassified

Desempeño económico de la mayor empresa de servicios educativos del mundo: un estudio de Kroton Educativa con base en sus segmentos operativos

Souza¹,

Mendonça²,

Silva

et al. 2018

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A Kroton Educacional é uma empresa brasileira que se destaca como a líder mundial no mercado de serviços educacionais. Este artigo tem por objetivo efetuar uma análise do desempenho econômico da Kroton Educacional no período de 2011 a 2016, tendo por base as informações por segmentos operacionais referentes a essa empresa. A coleta de dados foi efetuada a partir das demonstrações contábeis da companhia e identificaram-se as informações por segmentos divulgadas conforme o pronunciamento CPC 22: Informações por Segmento. A partir do cálculo dos indicadores de lucratividade e de rentabilidade, observa-se que o segmento de ensino superior à distância (EAD) foi o que mais contribuiu para a lucratividade da empresa. Já o segmento de ensino superior presencial, embora tenha sido responsável pela maior parte das receitas, não se destacou em termos de lucratividade ou de rentabilidade. Nota-se que o segmento de educação básica foi o que teve maior rentabilidade para a empresa. A companhia tem investido em estratégias de expansão e diversificação, incrementando sua lucratividade e rentabilidade. A análise efetuada auxilia para que o desempenho econômico da empresa seja compreendido com maior nível de detalhamento. Assim, destaca-se a contribuição do artigo ao propor análises econômicas baseadas nos indicadores por segmentos operacionais das empresas.

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IFRS 8 and the cost of capital in Europe

2022

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This study examines segment reporting information usefulness after the adoption of IFRS 8 in 18 European Union countries. Specifically, 1) we introduce a new comprehensive measure of segment reporting quality that reflects four different dimensions of segment information, 2) we investigate the impact of segment reporting quality on the cost of equity and debt capital after the adoption of IFRS 8, and 3) we investigate the moderating role of the country-level enforcement system on the association between segment reporting quality and the cost of equity and debt capital after the adoption of IFRS 8. Using a selfconstructed segment reporting quality measure and a sample of 884 firm-year observations over the period of 2007 to 2011, we provide evidence that investors and lending institutions find no change in the usefulness of segment reporting after the adoption of IFRS 8. Our study is original in using a comprehensive measure of segment reporting quality. Furthermore, our study is the first to examine the relationship between segment reporting quality and the cost of debt capital after the adoption of IFRS 8 and the moderating role of the country-level enforcement system. Our findings provide useful insights to regulator and accounting standard-setting bodies about segment reporting.

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Segment Disclosure Quantity and Quality under IFRS 8: Determinants and the Effect on Financial Analysts' Earnings Forecast Errors

Cited by 47 publications

References 74 publications

Managers’ segment disclosure choices under IFRS 8: EU evidence

Managers’ segment disclosure choices under IFRS 8: EU evidence

Desempeño económico de la mayor empresa de servicios educativos del mundo: un estudio de Kroton Educativa con base en sus segmentos operativos

IFRS 8 and the cost of capital in Europe

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