Frequency Of Disclosure Research Articles

Incentive Realignment: Mutual Funds’ Influence on Executive Compensation Contracts

Using a regulation that increased portfolio disclosure frequency of US mutual funds as an exogenous shock shortening funds’ investment horizon, we find that affected funds influence portfolio firms to reduce the pay duration of their executives to incentivize them to also have shorter investment horizon. We show that funds affect this change through both voice and exit channels, i.e., voting on compensation-related issues and divesting from portfolio firms. Cross-sectional tests corroborate these findings to reveal more pronounced effects when fund managers have stronger career incentives and are less distracted, and when funds are less concerned about free rider problems and share ownership with potentially supportive other short-term oriented investors.

Behind the Hashtag: Online Disclosure of Mental Illness and Community Response on Tumblr.

The present study examined personal disclosures about mental illness and the responses of online community members on the social media platform, Tumblr. We sampled public blog posts of 14,626 Tumblr users disclosing ten different mental health diagnoses using hashtags (e.g., #depression, #anxiety, and #anorexia). We examined the content of users' disclosures, predictors of disclosure frequency, and predictors of online community response. The content of most disclosures was related to users' emotions and cognitions about their mental health and their feelings of interpersonal loss and change over time. Content varied with users' disclosure frequency and with self-identified mental health diagnoses. Predictors of disclosure frequency included the "self effects" of writing about oneself or one's opinions, such as self-concept formation, and "reception effects" of receiving responses to one's writing. User disclosures generally increased with frequency of community response (reception effects), and the degree of this effect differed depending on the disclosed diagnosis (self effects). The responses of online community members also varied significantly across disclosed diagnoses. The implications of our findings for community research and action are discussed.

Non-GAAP Disclosures and CEO Pay Levels

We examine the association between CEO cash and equity compensation and non-GAAP disclosure practices in a responsive regulatory and opaque compensation reporting environment. Our empirical evidence, based on a sample of public companies in New Zealand, shows that CEO cash compensation is associated with the likelihood and frequency of non-GAAP disclosures, whereas equity incentives are not. Our results document evidence of an increase in the frequency of non-GAAP disclosures and a decrease in the provision and quality of reconciliation between non-GAAP measures and closely related GAAP measures around CEO cash compensation. In particular, managers use these disclosures when their GAAP earnings benchmarks are missed. A marginal decrease in opportunistic non-GAAP disclosures following the adoption of the International Financial Reporting Standards (IFRS) indicates little change in reporting behavior following adoption of IFRS. Our findings suggest that managers disclose non-GAAP measures with opportunistic intentions motivated by compensation and points to the need for regulators to set policy about clear reconciliation standards.

Health care utilization by women sexual assault survivors after emergency care: Results of a multisite prospective study.

Approximately, 100,000 US women receive emergency care after sexual assault each year, but no large-scale study has examined the incidence of posttraumatic sequelae, receipt of health care, and frequency of assault disclosure to providers. The current study evaluated health outcomes and service utilization among women in the 6 weeks after sexual assault. Women ≥18 years of age presenting for emergency care after sexual assault to twelve sites were approached. Among those willing to be contacted for the study (n = 1080), 706 were enrolled. Health outcomes, health care utilization, and assault disclosure were assessed via 6 week survey. Three quarters (76%) of women had posttraumatic stress, depression, or anxiety, and 65% had pain. Less than two in five reported seeing health care provider; receipt of care was not related to substantive differences in symptoms and was less likely among Hispanic women and women with a high school education or less. Nearly one in four who saw a primary care provider did not disclose their assault, often due to shame, embarrassment, or fear of being judged. Most women receiving emergency care after sexual assault experience substantial posttraumatic sequelae, but health care in the 6 weeks after assault is uncommon, unrelated to substantive differences in need, and limited in socially disadvantaged groups. Lack of disclosure to primary care providers was common among women who did receive care.

China’s financial sector sustainability and “green finance” disclosures

PurposeThis paper aims to provide a longitudinal analysis of influences on China’s financial sector’s sustainability reporting practices, examines “green finance” disclosures and undertakes subsector comparisons. The state’s impact on the quantity and quality of reporting practices is analyzed.Design/methodology/approachContent analysis is used to examine the volumes, frequency and content of sustainability disclosures by China’s financial institutions. Survival analysis is used to identify factors significant in firms’ initiation of these disclosures. In total, 308 firm-year observations on disclosures are examined for 2007–2016.FindingsChina’s financial sector’s sustainability reporting pieces of evidence an “emerging stage” (2007–2009), “developing stage” (2010) and “greening stage” (2011–2016). The roles of institutional theory and regulatory pressure in explaining Chinese financial firms’ reporting behaviours are supported.Research limitations/implicationsThis study has several limitations. Firstly, given data restrictions, use of a relatively small sample size. Secondly, it examines different categories of disclosures made by financial firms, not more detailed content. Thirdly, is the potential overlap in disclosure themes under the classification scheme.Practical implicationsChina’s financial sector’s adoption of sustainability reporting has been institutionalized, mainly in its banking subsector, consistent with general regulatory pressures.Social implications“Greening the finance system” is examined in China’s context, as the country transforms from a resource and pollution-intensive to a green economy.Originality/valueThe financial sector is normally excluded from in-depth qualitative research. This study examines China’s financial sector’s responses to recent governmental pressures on green finance disclosures.

쉬코노미 시대, 여성인력이 기업의 공시품질에 미치는 영향 : 공정공시 빈도를 중심으로

본 연구는 최근 여성의 사회·경제적 위상이 높아지면서 여성인력과 관련된 법·제도가 급변하고 있는 현상에 관심을 가지고 기업의 공시의무 이행에 대한 여성인력의 영향에 대해 살펴본다. 여성인력은 보수성(리스크 회피적, 낮은 과신성향) 및 도덕성(윤리적, 규제준수) 등과 같은 생물학적인 특성을 바탕으로 기업의 공시의무를 적극적으로 이행할 것으로 기대된다. 분석 결과 여성인력(여성임원 및 여성직원)의 수(비중)가 많을수록(높을수록) 기업의 공시품질(공정공시 빈도)이 높은 것으로 나타났다. 따라서 기업의 경영 및 실무 차원에서 여성인력은 공시품질 제고에 기여한다고 할 수 있다. 본 연구는 여성인력과 공시품질 간의 관계에 대해 살펴봄으로써 기업지배구조 차원에서 공시품질에 영향을 미치는 요인을 설명할 수 있는 연구의 범위를 확장한다. 또한 기업의 투명성 제고를 위한 성별 인력구성의 영향을 고찰함에 따라 시장 참여자의 투자의사결정 시 여성인력 비중이 높은 기업이 제공하는 정보에 대해 긍정적인 시각을 가질 수 있다는 근거를 제시한다. 더 나아가 최근 도입된 ‘여성임원할당제(2020년 7월 시행)’ 등과 같은 양성평등 인력 정책의 필요성에 대한 정책적 시사점을 제공한다.

Use of Dietary Supplements in Pediatric Liver Disease and Transplantation.

Dietary supplements are frequently used by healthy individuals and those with chronic medical conditions but may cause damage to the liver. The aim of this study was to examine the prevalence and attitudes of dietary supplement use, and the frequency of disclosure to healthcare providers among parents/caregivers for children with chronic liver disease. We developed an anonymous survey for parents/caregivers of children (<18 years old) with chronic liver disease or liver transplant recipients and distributed the survey through social media groups organized around pediatric liver diseases. The survey was completed by 101 parents/caregivers (48 without transplant and 53 posttransplant).Among respondents, 87% agreed they would use dietary supplements to help their child, but parents/caregivers of transplant recipients were less likely to consider use (77% vs 98%; P = 0.01). In the past 12 months, 83% reported dietary supplement use including 47% who used nonvitamin/mineral supplements. In two-thirds of parents/caregivers, use was initiated by their personal belief. Although 77% of respondents disclosed their use to their liver team, disclosure varied depending on the supplement with no individual that used cannabinoid products disclosing the use. Dietary supplements are frequently used by children with liver disease and may exceed use in other pediatric conditions. Though most parents report use to their liver team, disclosure may vary depending on the specific supplement. Providers should take extra measures to review use of supplements with their patients and work to develop trust with their families to obtain accurate disclosure of use.

Disclosure Frequency, Information Environment, and Cost of Capital under Regulation Fair Disclosure in the Korean Market

Disclosure policy contributes to improve sustainable corporate information environment by mitigating information asymmetry surrounding companies. Economic theories generally support that more disclosures reduce the level of information asymmetry, increase stock liquidity, and thus decrease the costs of equity capital. However, the effect of corporate disclosure in emerging markets is not clearly predictable because of the potential information leakage prior to disclosure. Considering this issue, this study focuses on the Regulation Fair Disclosure which prohibits selective disclosure. Using the earnings-to-price ratio as a proxy of the costs of equity, the study finds that disclosure frequency is negatively related to the cost of equity capital. However, I do not find evidence that disclosure is negatively related to the implied costs of equity capital (ICOE). The results of the quintile analysis suggest that this inconsistency is attributable to the better information environment of the ICOE sample. The findings of this study have implications for disclosure regulations in emerging markets, given that the existing literature casts doubt on the effectiveness of corporate disclosure in such markets.

Embedding Sustainability Performance and Long‐Term Strategy in the Earnings Call

The practice of disclosing corporate Environmental, Social and Governance performance information continues to evolve, and the frequency of ESG disclosures in investor‐facing discussions, including Investor Day presentations and non‐deal roadshows, continues to grow. But even with these developments, the corporate‐investor dialogue about ESG and long‐term strategy, and their expected effects on long‐run profitability and value, has continued to lag. This seems particularly evident in the quarterly earnings call.In this article, the authors review the work of NYU's Center for Sustainable Business, in collaboration with Chief Executives for Corporate Purpose (CECP), in encouraging companies to work ESG themes and performance into their quarterly earnings calls. After discussing the reasons for the relatively slow progress in this important disclosure venue, including interviews with sell‐side analysts, the authors propose practical approaches that can guide companies, regardless of industry or market cap, in delivering this content in a way that is valuable to both buy‐side and sell‐side equity analysts.

Credit Default Swaps and Non-GAAP Earnings Disclosure

We examine the effect of credit default swap (CDS) coverage on voluntary disclosure using firm provided non-GAAP earnings as a laboratory. For a large sample of U.S. firms, we find that for companies with CDS coverage, the persistence of non-GAAP exclusions is lower, implying higher disclosure quality. The effect manifests across a range of performance measures and measurement windows and is strongest among non-investment-grade firms, entities for which monitors are more likely to rely on public accounting reports. This improvement in quality comes as a counterpoint to a decrease in the frequency of non-GAAP disclosure among firms that experience CDS coverage initiation. Collectively, our findings suggest firms counteract the perceived negative externalities associated with CDS coverage with higher-quality voluntary disclosure.

Publicizing Arbitrage

AbstractHow does greater public disclosure of arbitrage activity and informed trading affect price efficiency? To answer this, we exploit rule amendments in U.S. securities markets, which impose a higher frequency of public disclosure of short positions. Higher public disclosure can hurt the production of information and deteriorate efficiency, or it can be beneficial by mitigating the limits to arbitrage and diffusing arbitrageurs’ information faster. With more frequent disclosure, information encapsulated within short interest is incorporated into prices faster, improving price efficiency. We find important reductions in short sellers’ horizon risk and increases in short sales with the rule amendments.

A simple structural estimator of disclosure costs

This study recovers a simple firm-level measure of disclosure costs implied by the voluntary disclosure theory of Verrecchia (Journal of Accounting and Economics 12(4), 365–380, 1990). The measure does not require knowledge by the researcher of the distribution of private information and can be implemented with three simple observable inputs: the minimum, average, and frequency of disclosure. We document a positive association of disclosure costs with proxies for existing and potential competition, information asymmetry, and insider trading. Higher values of disclosure costs are associated with lower contemporaneous and future disclosures as well as lower propensity to disclose in holdout samples. Overall, we provide future researchers with an easy-to-implement procedure to structurally estimate unobserved firm-level disclosure costs.

Environmental Disclosure and Stock Market Liquidity of Public Listed Firms in Malaysia

The frequency of environmental disclosure that implemented by public listed firms worldwide had been increased. This is because disclosure of environmental information can enhance the stock market liquidity. The main purpose of the research was to investigate the relationship between environmental disclosure and the stock market liquidity of public listed firms in Bursa Malaysia in term bid-ask spread. Disclosure of environmental information was measured by using content analysis of word counts in annual reports. There are 465 companies as the final samples from year 2016 had been investigated. The financial data were collected from Data Stream by Thomson Reuters while non-financial were gather from the annual reports. After accounting for control variables such as firm leverage, firm size and market to book ratio, the results showed that there has relationship between environment disclosure and stock market liquidity. Environmental disclosure had positive significant relationship with bid-ask spread. This suggested that high disclosure level of environmental disclosure helped the public listed firms to increase the stock market liquidity and enhance investor in making investing decision by increase firm transparency. For future research, this paper recommended to extend the study by using other variables such as trading volume and stock volatility as other measurements of stock market liquidity.

Financial Market Frictions and Learning from the Stock Price

Short-term traders could affect the informativeness of stock prices about long-run fundamentals. Less (more) short-termism may thus induce managers to rely more (less) on stock prices in real investment decisions. Supporting this notion, we show that, for a large sample of U.S. stocks over 1983-2016, the investment-to-price sensitivity is inversely related to two short-termism proxies (controlling for firm size): institutional investor churn and liquidity. We confirm this finding using decimalization and an increase in mutual fund disclosure frequency as exogenous shocks to short-termism. Furthermore, short-termism is associated with an increased likelihood of voluntary capital expenditure forecasts by managers, suggesting a greater tendency to solicit market feedback when short-termism is high.

Disclosing Unwanted Pursuit Victimization: Indirect Effects of Negative Reactions on PTSD Symptomatology Among Undergraduate Women.

A growing literature has documented that negative social reactions to disclosures of sexual and intimate partner violence (IPV), such as victim blaming or disbelief, can negatively affect survivors' recovery. However, despite growing recognition of the frequency of unwanted pursuit behaviors (UPBs; for example, stalking, excessive or threatening contact) following romantic relationships and their negative effects on survivors, research to date has not explored disclosures, social reactions, or their impacts among victims of UPBs. The purpose of the present study was to assess the frequency of disclosures of UPB victimization to various sources, social reactions received, and their associations with symptoms of posttraumatic stress disorder (PTSD). Among a sample of 318 undergraduate women (ages 18-24) who reported a breakup within the past 3 years, 59.7% (n =190) reported experiencing UPBs. Nearly all of the women (92.6%; n =176) who experienced UPBs disclosed their victimization to others. Among women who disclosed, the most frequent recipient of disclosure was a female friend (93.2%, n = 164) and women reported receiving higher mean positive than negative social reactions (p < .001). Results supported the hypothesized indirect effect of UPB victimization on PTSD symptoms through increases in negative social reactions (p < .001); these results suggest that negative social reactions to UPB victimization may increase the risk for PTSD symptomatology. By contrast, there was no indirect effect via positive social reactions (p = .205). Implications for research and clinical practice will be discussed.

Voluntary, Self-Regulatory, and Mandatory Disclosure of Oil and Gas Company Payments to Foreign Governments

SYNOPSISConcerns about high rates of government corruption in resource rich countries have led transparency advocates to urge oil and gas firms to disclose payments to host governments for natural resources. Transparency, they argue, can increase government accountability and mitigate corruption. However, we find a low frequency of voluntary disclosures of payments by oil and gas firms, and negative stock price reactions for affected firms at the announcement of regulations mandating disclosure. This suggests that sample firm managers and their investors perceive that such disclosures generate private costs, despite any public benefits. We document that industry self-regulation has generated information to substitute for the gap in voluntary company disclosure and that such disclosures are accompanied by lower country corruption ratings. This suggests that collective action could be an effective way for companies to manage the private costs of disclosure and respond to public pressure for transparency that could provide public benefits.JEL Classification: M441; M48; H41; G38.

The Effect of Firm size and Characteristics of the Operating Performance Forecast Disclosure on Information Asymmetry

본 연구는 공정공시와 정보비대칭의 관계에서 기업규모와 공시과정에서 다양한 선택이 미치는 영향을 검토하였다. 2004년부터 2018년까지 유가증권 상장기업을 대상으로 공정공시 관련 자료는 한국거래소 전자공시시스템(KIND)에서 수집하였으며, 기업관련 자료는 Fn-Guide를 이용하였다. 정보비대칭은 매도-매수호가스프레드로 검증하였으며, 일별 고가와 저가를 사용하여 측정하였다. 본 연구의 실증분석결과를 요약하면 다음과 같다. 첫째, 공정공시를 통해 영업실적 예측공시를 수행한 기업들은 그렇지 않은 기업들에 비해 정보 비대칭이 감소하였다. 이러한 결과는 기업규모별로 차이를 보이는데 예측공시를 수행한 기업들의 정보비대칭감소는 소규모 기업이 아닌 중·대규모 기업에서만 유의한 결과가 나타났다. 둘째, 영업 실적 예측공시 특성 중 예측공시빈도가 높을수록 정보비대칭이 감소하였으며 기업규모별 분석에서 대규모 기업에서만 유의한 결과를 보였다. 강력하지는 않지만 예측공시항목의 수가 많을수록 정보비대칭은 증가하는 결과를 얻었으며, 정정공시는 정보비대칭에 영향을 미치지 않는 것으로 나타났다. 본 연구결과는 공정공시를 통한 영업실적 예측공시가 정보비대칭에 미치는 효과에 대한 이해를 높였다는 점에 의의가 있다. 또한 기업규모별로 나누어 검토함으로써 정보비대칭 효과가 기업마다 다르다는 것을 알 수 있었다. 마지막으로 예측공시와 관련된 여러 가지의 선택사항을 함께 검토함으로써 정보비대칭에 대한 영향에 있어서 상호간의 관계를 파악하는 한편 예측공시의 어떠한 선택사항이 정보비대칭에 대한 영향을 주도하는가를 검토할 수 있었다In this study we examine the effects of firm size and different choices of operating performance forecast disclosure on the relationship between fair disclosure and information asymmetry. The main findings of this study are summarized as follows: First, we find that firms which disclosed operating performance forecast through the fair disclosure showed a decrease in the information asymmetry compared to those that did not, which differed by firm size. The reduction in the proportion of information asymmetry that performed the forecast disclosures was significant only for medium and large firms, not for small businesses. Second, firms disclosed operating performance forecast, the higher the frequency of disclosure, the lower information asymmetry. The number of disclosure items has positive effect on information asymmetry, but the frequency of revision disclosures is not significant. The results of this study have implications to improves our understanding of the effects of disclosure of operating performance forecast on information asymmetry.

Law and Lemons

We study how statutory-law changes relate to disclosure, pricing, and liquidity in the used-car market. Federal odometer laws mandated disclosure of mileage on car titles upon ownership transfer and thereby enhanced enforcement of odometer-fraud prohibitions. Exploiting time variations in state implementation of odometer regulations, we have four key findings. First, the frequency of mileage disclosure in classified ads increases significantly post implementation, suggestive of improved disclosure incentives. Second, the sensitivity of asking price to mileage disclosed increases post implementation, suggesting that laws increased the credibility of information disclosed. Third, we show a 5.8 percent increase in asking price, indicating a reduction of adverse selection. Fourth, we find a decrease in repeated ads, particularly among mileage disclosers−implying that the law improves trade liquidity. Our study highlights the value of laws in enhancing verifiability of disclosed information and market outcomes.

최고경영자의 특성과 기업의 공시 빈도 간의 관련성 연구

최고경영자의 특성과 기업의 공시 빈도 간의 관련성 연구

The quality of mother‐adolescent disclosure: Links with predictors and adolescents’ sociomoral outcomes

AbstractPrevious work on adolescents’ disclosure has focused on the frequency of disclosure to parents, but not the quality of that disclosure. Therefore, there is a need to examine factors that predict the quality of adolescents’ disclosure, as well as the consequences of the quality for adolescents’ outcomes. In this study, 100 adolescents (M age = 14.27 years; 57 girls; 70.7% White, European American) disclosed to mothers a recent past event in which they felt excluded; the videotaped and transcribed conversations were rated for indices of the quality of disclosure (i.e., the quality of elaboration and emotion discussed). Adolescents completed measures of sociomoral behavior and parental warmth and mothers completed measures of their moral identity, circle of moral regard, and moral socialization. The quality of adolescents’ disclosure was related to adolescents’ sociomoral outcomes (including prosocial behaviors, empathy, and sociability). Adolescents’ disclosure quality was predicted by gender and by aspects of mothers’ moral sophistication. Findings highlight the importance of high‐quality self‐disclosure by adolescents for promoting adolescents’ moral development, potentially because such disclosure gives parents the opportunity to help adolescents cope with challenging peer experiences potentially through emotion coaching and problem‐solving. Moreover, the findings are novel because they highlight how maternal moral processes might promote adolescents’ disclosure.