Voluntary Disclosure and Information Asymmetry: Evidence from the 2005 Securities Offering Reform

Shroff, Nemit; Sun, Amy X.; White, Hal D.; Zhang, Weining

doi:10.1111/1475-679x.12022

Cited by 239 publications

(152 citation statements)

References 70 publications

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“…Prior studies provide evidence that firms use various mechanisms to lower their financing cost around SEOs (e.g., Teoh et al 1998, Lang and Lundholm 2000, Kim and Park 2005, Shroff et al 2013, and media-related studies show that the tone of news stories can affect firms' cost of capital (e.g., Kothari et al 2009). As such, we expect that firms with poor media images prior to an SEO would have incentives to engage in active media management in order to maximize the proceeds they obtain from the offering.…”

Section: Change Around Seo Offeringmentioning

confidence: 99%

Corporate social responsibility and media coverage

Cahan

Chen

et al. 2015

Journal of Banking & Finance

244

128

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Section: Change Around Seo Offeringmentioning

confidence: 99%

Corporate social responsibility and media coverage

Cahan

Chen

et al. 2015

Journal of Banking & Finance

244

128

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“…In the manager's incentives theory according to von Alberti-Alhtaybat (2012) includes the agency theory, signaling theory, and the theory of capital need. The previous study on the effect of voluntary disclosure to the asymmetry of information carried by Oluwagbemiga, (2014); Shroff et al (2013), Purwanti and Kurniawan (2013), Balakrishnan et al (2012) demonstrate the relationship.…”

Section: Elements Of Integrated Reporting and Information Asymmetrymentioning

confidence: 82%

The Accuracy of Earning Forecast Analysis, Information Asymmetry and Integrated Reporting – Case of Indonesia

Indrawati¹

2017

Journal of Accounting and Business Dynamics

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The purpose of this study is to examine factors that affect companies presents the elements of integrated reporting in their annual reports and how its effect on the accuracy of earnings forecast analysis and information asymmetry. The independent variables tested were institutional ownership, company size, profitability, international activities, and industry type and growth opportunity. The study population is non-financial companies listed on the Indonesia Stock Exchange in 2015. The samples were taken by using purposive sampling i.e. with some specific criteria. The data was analysed by using multiple regression analysis to examine the factors affecting the company presents the elements of integrated reporting in the annual report, and a simple regression to see how the presentation of the elements of integrated reporting affect the asymmetry of information and the accuracy of earnings forecast analysis. This study found that only the size of the companies determines the presentation of the elements ofintegrated reporting in the annual report. In addition, this study does not confirm the effect of the presentation of the elements of integrated reporting on the information asymmetry and the earnings forecast analysis accuracy.

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“…The paper contributes towards literature on voluntary disclosures. Its major contribution is focused towards economic consequences of disclosures by way of better stock returns, as enhanced and prolonged voluntary disclosures reduce information asymmetry and thus enhance investor confidence and protection (Shroff et al 2013.) The study can be extended to study the same variables against other economic consequence proxies like profitability of firm in the presence of firm characteristics.…”

Section: Resultsmentioning

confidence: 99%

“…The study did found that disclosures have impact on volatility and increased disclosures surely can help in reducing volatility as well as information asymmetry. Further Shroff, et al (2013) highlighted the market effect of voluntary disclosure reforms on investors and capital markets. Voluntary disclosures contribute towards efficient capital markets by reducing information asymmetry and thus enhance investor protection and confidence.…”

Section: Review Of Literaturementioning

confidence: 99%

Corporate Disclosures and Financial Performance of Selected Indian Manufacturing and Non- Manufacturing Companies

Sahore¹,

Verma²

2017

AFR

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Disclosures play a pivotal role in addressing the issues related to information asymmetry and agency costs of firms. Voluntary disclosures are those disclosures which are beyond the compulsory ones and are communicated portraying a better image of the company and its prospects in front of its investors. Therefore this study intends to extend various aspects of corporate disclosure practices, mainly voluntary disclosures of selected Indian companies. Under contract theory of economics, information asymmetry leads to superfluous decisions because of information gap between the parties. It is also important to assess the possible economic consequence of voluntary disclosures i.e. the incentive by way of enhanced firm performance. The results of the study obtained through correlation and regression approach are very encouraging and are evident of stock returns responding to corporate voluntary disclosures, financial as well as non-financial, particularly in the recent years. The effect of increased disclosures on stock prices is of possible interest to investing community and stakeholders at large including the policy makers and regulators. It is not just about the level of disclosures but also the type of disclosures e.g. non-financial disclosure like forward looking, social, and environmental which play an important role in enunciating the association between the two variables. The paper sufficiently contributes towards literature on voluntary disclosures. Its major contribution is focused towards economic consequences of disclosures by way of better stock returns and implications for Indian stock market regulator to assess the impact of its policy on manufacturing and non-manufacturing companies listed in CNX 100 index of National Stock Exchange of India.

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Voluntary Disclosure and Information Asymmetry: Evidence from the 2005 Securities Offering Reform

Cited by 239 publications

References 70 publications

Corporate social responsibility and media coverage

Corporate social responsibility and media coverage

The Accuracy of Earning Forecast Analysis, Information Asymmetry and Integrated Reporting – Case of Indonesia

Corporate Disclosures and Financial Performance of Selected Indian Manufacturing and Non- Manufacturing Companies

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