Initial Disclosure Research Articles

Stock price crash risk and internal control weakness: presence vs. disclosure effect

AbstractThis study examines the stock price crash risk for a sample of firms that disclosed internal control weaknesses (ICW) under Section 404 of the Sarbanes‐Oxley Act (SOX). We find that in the year prior to the initial disclosures, ICW firms are more crash‐prone than firms with effective internal controls. This positive relation is more pronounced when weakness problems are associated with a firm's financial reporting process. More importantly, we find that stock price crash risk reduces significantly after the disclosures of ICWs, despite the disclosure itself signalling bad news. The above results hold after controlling for various firm‐specific determinants of crash risk and ICWs. Using an ICW disclosure as a natural experiment, our study attempts to isolate the presence effect of undisclosed ICWs from the initial disclosure effect of internal control weakness on stock price crash risk. In so doing, we provide more direct evidence on the causal relation between the quality of financial reporting and stock price crash risk.

Forced Voluntary Disclosure

Two–way communication via social media platforms allows the firm to make an initial disclosure decision and then revise it after observing the response on social media to its initial decision. We examine the pressures interactive communications place on disclosure choices and find that negative social pressure “forces” some firm types to respond and disclose information they initially did not disclose. The valuable option to revise reduces the probability of an initial disclosure. Further, an increase in the initial disclosure cost reduces the probability of an initial disclosure but increases the probability of a subsequent disclosure. Similarly, an increase in the cost of a subsequent disclosure increases the probability of an initial disclosure but decreases the probability of a subsequent disclosure. These effects are amplified if the firm is more likely to face social media pressure or if its value is more sensitive to it.

Experiences of men who commit to romantic relationships with younger breast cancer survivors: A qualitative study

ABSTRACTThis phenomenological study examined the experiences of men who committed to romantic relationships with women under 50, post–breast cancer diagnosis and treatment. Twelve men from throughout the United States, who were dating their partner for at least 6 months, participated in semistructured interviews. Findings focused on initial disclosure timing, previous experience/knowledge about the cancer, reacting with acceptance despite concerns, focusing on love/connection, respecting and admiring the survivor, and the ongoing impact of cancer on the relationship. Clinical implications are discussed, highlighting the systemic effect that breast cancer may have on a couple even after treatment is completed.

COMMUNICATION ON DISCLOSURE OF TUBERCULOSIS DIAGNOSIS AND ADHERENCE TO TREATMENT: SOCIAL REPRESENTATIONS OF PROFESSIONALS AND PATIENTS

ABSTRACT Objective: identifying social representations of health professionals and patients with tuberculosis in an initial interview for diagnostic disclosure and analyzing discursive content regarding the relation of this mode of communication during the interview for adherence of these patients to tuberculosis treatment. Method: a descriptive and qualitative study. A semi-structured interview was conducted with 39 health professionals involved in the initial tuberculosis diagnosis disclosure interview and 34 adult patients undergoing treatment in 22 health units in the southern region of São Paulo (Brazil). Discourse analysis was based on the discussions about “Awareness”, developed by Paulo Freire. Results: a lack of explanations resulted in patients not understanding the diagnosis, abrasiveness by health professionals, the need for health education and how to approach the patient have emerged as conditions that influence patient adherence to treatment. Conclusion: regarding communication, we have identified a professional exercise that is contrary to promoting patient adherence to treatment, since it does not allow them to critically reflect on their current situation, and consequently does not modify their reality (in choosing adhesion and cure), thus characterizing incompetent communication.

Disclosure Readability and the Sensitivity of Investors' Valuation Judgments to Outside Information

ABSTRACT Prior literature suggests that investors react less strongly to information in less readable disclosures. We extend this literature by considering how disclosure readability affects the sensitivity of investors' valuation judgments to the information contained in outside (i.e., non-firm) sources of information. Using an experiment, we present investors with a disclosure containing mixed news about the valence of firm performance, and this disclosure varies in readability. We find that investors who initially view a less readable firm disclosure provide valuation judgments that incorporate the outside information to a greater extent, such that their valuation judgments are more sensitive to whether outside information is relatively more or less supportive of management's positive forward-looking statements. We find evidence that this occurs primarily because investors who view a less readable initial disclosure feel less comfortable evaluating the firm and, in turn, rely more on the outside information. We also find that viewing a less readable firm disclosure indirectly increases the extent to which participants search outside information. Combined, our results suggest that investors' valuation judgments may be more influenced by outside sources of information when managers provide less readable firm disclosures, potentially limiting the extent to which managers can benefit from strategically issuing less readable disclosures to obfuscate poor performance. These findings also imply that investors might over-rely on more readable disclosures while discounting outside sources of information about the firm. Data Availability: Contact the authors.

Disclosure Readability and the Sensitivity of Investorss Valuation Judgments to Outside Information

Prior literature suggests that investors react less strongly to information in less readable disclosures. We extend this literature by considering how disclosure readability affects the sensitivity of investors’ valuation judgments to the information contained in outside (i.e., non-firm) sources of information. Using an experiment, we present investors with a disclosure containing mixed news about the valence of firm performance, and this disclosure varies in readability. We find that investors who initially view a less readable firm disclosure provide valuation judgments that incorporate the outside information to a greater extent, such that their valuation judgments are more sensitive to whether outside information is relatively more or less supportive of management’s positive forward-looking statements. We find evidence that this occurs primarily because investors who view a less readable initial disclosure feel less comfortable evaluating the firm and, in turn, rely more on the outside information. We also find that viewing a less readable firm disclosure indirectly increases the extent to which participants search outside information. Combined, our results suggest that investors’ valuation judgments may be more influenced by outside sources of information when managers provide less readable firm disclosures, potentially limiting the extent to which managers can benefit from strategically issuing less readable disclosures to obfuscate poor performance. These findings also imply that investors might over-rely on more readable disclosures while discounting outside sources of information about the firm.

Ceci n'est pas une pipe! Corporate Governance practices under two political regimes in Bangladesh: A political economy perspective

This study investigates self-reported paper-based tick-box corporate governance (CG) compliance and actual CG compliance from 2007 to 2011 in Bangladesh. It further investigates the effectiveness of the Anglo-Saxon model of CG in Bangladesh. A survey of annual reports (totalling 80 firm-year observations) for 2 years (2007 and 2011), a total of 1,194 Bangladesh Securities and Exchange Commission’s (BSEC) enforcement documents from 2006 to 2010 were evaluated and 20 semi-structured interviews (2013) were conducted. Falsification of CG describes the difference between the self-reported disclosure score (initial CG compliance disclosure) by the company and the actual score that is found through detailed investigation of the annual report. Drawing on political economy theory, this study contributes to the international CG literature in two ways. First, actual CG compliance and falsification were stable under two political regimes. This means that, at least from the point of view of CG and the stock market, the democratic and military governments in Bangladesh were equal. However, the rate of falsification of information is an alarming issue for both local and international policy-makers, and is of considerable importance for local and international investors. Second, the Anglo-Saxon model of CG is not conducive in Bangladesh because of four contextual factors including (a) family ownership and the absence of independent director, (b) political businessmen, (c) corruption and lack of enforcement, and (d) the donor’s continual intervention. It can be argued that Anglo-Saxon model of CG transplanted in completely different institutional environments may outweigh its benefit and ultimately challenge appropriateness in emerging economies. This paper provides one of the very few studies utilising an emerging economy data in international business governance research under two very different political regimes.

P064 Delivery of sexual health interventions for men who have sex with men (HPV vaccination and PrEP) may be hindered by the lack of sexuality disclosure in primary care

Background/introduction Large scale new sexual heath interventions for MSM (HPV vaccination, PrEP) will potentially need to be delivered in primary care as well as sexual health. It is important these services are acceptable to MSM and MSM feel confident to disclose their sexuality. Methods From November 2015 to February 2016, a paper survey was distributed to MSM attending local sexual health services on acceptability of local services and initial disclosure of sexuality to a healthcare setting. National Student Pride also used an online version of the survey. Results 1186 MSM were included in the analysis of this survey. The median age was 26.8 years (18–89). 1026/1186 (86.5%) self-identified as gay, 108/1186 (9.1%) bisexual and 34/1186 (2.9%) straight. 918/1186 (77.4%) were HIV-negative, 42/1186 (3.5%) HIV-positive, 188/1186 (15.9%) never tested, and 38/1186 (3.2%) unknown status. The median age of first sexual behaviour with another man was 17.6 years (6–41). The median age of disclosure of sexuality to: family is 18 years (8–45) and friends 17 years (11–41); sexual health services 892/1186 (66.6%) = 19.0 years (14–54); and to primary care 522/1186 (44%) = 21.2years (13–54). There is a difference between age of first sexual experience and disclosure to primary care of 3.6 years. Discussion/conclusion Delayed disclosure to healthcare professionals of sexuality by MSM is likely to impede the uptake of important health interventions in MSM.

The Continuum of Disclosure: Exploring Factors Predicting Tentative Disclosure of Child Sexual Abuse Allegations During Forensic Interviews and the Implications for Practice, Policy, and Future Research

ABSTRACTWhen a child sexual abuse investigation ensues, many children do not disclose readily to professionals. Defining disclosure beyond the disclosure versus nondisclosure dichotomy is essential, yet little research exists on factors associated with a continuum of disclosure, including active and tentative disclosure. Through the coding of 196 forensic interviews using content analysis and subsequent regression analysis, findings suggest that children of color, children abused by adults, unintentional initial disclosure, and those lacking family support were more likely to tentatively disclose in this study. Implications include a need to understand tentative disclosure as part of a normal continuum of disclosure within court proceedings and investigations of abuse allegations.

Annonce d’un événement indésirable grave associé aux soins au patient : évaluation des pratiques médicales à partir de vignettes cliniques

The French National Authority for Health has made serious adverse event disclosure one of its priority areas of work. The objective of the study was to explore clinicians' perceived practices of disclosing such events. Between June and July 2012, a structured questionnaire was emailed to all clinicians and residents working at the Nantes Teaching Hospital. The questionnaire consisted of 3 parts first, clinical vignettes-with medical and surgical cases exploring five areas of practices (initial disclosure, disclosure of details, disclosure of the cause, apologies, and patient information about preventive actions); second, questions about the reasons for disclosure or non-disclosure; third, an evaluation of the training needs. The overall response rate was 18.8% (n=322/1709). Clinicians did not realize initial disclosure in 13.4%, disclosure of details in 24.5%, disclosure of the cause in 44.1%. Of the respondants, 4% of them would not apologize and 11.2% of them would not discuss detailed plans for preventing recurrences. Results were significantly different between medical and surgical specialities concerning disclosure of details and the cause of adverse events: surgeons were significantly less inclined than physicians to volunteer any details unless asked by the patient (72.9% vs 16.1%; P<0.001); to disclose the cause of the events (54.2% vs 42.3%, P<0.001); and to apologize or to offer an expression of regret (16.7% vs 1.8%; P<0.001). The main reason that led respondents to disclose as well as not disclose was to maintain trust in their relationship with the patient. Younger clinicians expressed more difficulties with adverse event disclosure and had more important training needs. Based on these results, an improvement program for the disclosure of serious adverse events is currently being implemented in the hospital, consisting of training sessions, documentation and support for the clinicians.

Efficiency in initial public offerings and intellectual capital disclosure

The returns of initial public offerings (IPOs) on the first trading day, or the underpricing of IPOs, are a puzzle according to the Efficient Market Hypothesis. Many studies have attempted to relate these returns to different variables. We studied the relationship between underpricing and information about intellectual capital (IC), source of competitive advantage, disclosed in IPO prospectuses as well as other control variables. Our conclusion is contrary to certain literature, as IC information does not have any influence on underpricing but is consistent with the semi-strong efficient market hypothesis defended by Eugene Fama (Nobel in Economics 2013).

Caregivers' Attitudes towards HIV Testing and Disclosure of HIV Status to At-Risk Children in Rural Uganda.

Caregivers of HIV-positive children were interviewed in the Mbarara and Isingiro districts of Uganda to identify current trends in practices related to HIV testing and the disclosure of HIV status to the child. A total of 28 caregivers of at least one HIV-positive child participated in semi-structured interviews exploring when and why they tested the child for HIV, when the child was informed of their positive status, and what the caregiver did to prepare themselves and the child for status disclosure. For a majority (96%) of respondents, the decision to test the child for HIV was due to existing illness in either the child or a relative. Other common themes identified included the existence of stigma in the caregivers’ communities and doubt that the children truly understood what was being explained to them when their status was disclosed. Most (65%) children were informed of their HIV status between the ages of 5 and 9, with the mean age of disclosure occurring at the age of 7. General provision of HIV information typically began at the same age as disclosure, and as many as two thirds (64%) of the caregivers sought advice from an HIV counsellor prior to disclosure. How a caregiver chose to prepare themselves and the child did not affect the caregiver’s perception of whether the disclosure experience was beneficial or not. These findings suggest that the HIV disclosure experience in Mbarara and Isingiro districts differs from current guidelines, especially with respect to age of disclosure, how caregivers prepare themselves and the child, and approaching disclosure as an ongoing process. The doubts expressed by caregivers regarding the child’s level of HIV understanding following the disclosure experience suggest the children may be insufficiently prepared at the time of the initial disclosure event. The findings also suggest that examining the content of pre-disclosure counselling and HIV education, and how health care professionals are trained to facilitate the disclosure process as important avenues for further research.

Too Big to Jail? Company Status and Judicial Bias in an Emerging Market

AbstractManuscript TypeEmpiricalResearch Question/IssueThis paper examines prosecutorial and judicial decisions to incarcerate the suspect upon indictment or conviction of embezzlement or breach of fiduciary duty in Korean firms. Our aim is to evaluate whether the judicial system is biased in favor of large business groups or chaebols in criminal cases.Research Findings/InsightsUsing a sample of 84 indictments and 78 convictions for embezzlement or breach of duty against managers of publicly traded firms in Korea between 2004 and 2008, we find that the probability of incarceration is much smaller if the indicted are associated with large business groups or large firms. In non‐large business group firms, initial disclosure of such accusation results in an average loss of a quarter of market value, and three quarters of convicted individuals are eventually removed from managerial positions. However, we observe neither such a loss nor turnover in large business group member firms.Theoretical/Academic ImplicationsWe identify a new determinant of judicial bias, namely the status of the company, in addition to individual‐level social status or class that has been examined in the previous literature. Such bias may reflect potential future career concerns of the prosecutors and judges who later become lawyers. The results also suggest that an additional motivation behind empire building or size‐maximizing behavior of top management is to effectively implement a legal strategy, a form of non‐market strategy.Practitioner/Policy ImplicationsCorporate managers may apply our findings to manage legal risks and to formulate nonmarket strategies. However, biases in individual sentences may create system risk and economy‐wide inefficiencies. In order to reform the legal system, policymakers should take into account the externalities in individual sentencing decisions.

Selective Disclosure and the Role of Form 8-K in the Post-Reg FD Era

We investigate whether Form 8-K disclosures mitigate analysts’ information advantage in the presence of initial selective disclosure. Using cross-sectional variation in firms’ social connections with the investment community to identify firms prone to selective disclosure, we show that the precision and the relative amount of analysts’ private information are higher prior to 8-K filings for connected firms, consistent with selective disclosure. More importantly, 8-K filings attenuate the influence of social connections on the quality and quantity of analysts’ private information. Additional analyses reveal that this leveling of the information playing field is concentrated among 8-Ks filed to comply with Reg FD.

Pathways to help: adolescent sexual assault victims' disclosure and help-seeking experiences.

In this study, we conducted semistructured interviews with N = 20 adolescent sexual assault victims who sought postassault help from the medical and legal system to understand young survivors' disclosure and help-seeking processes. Results revealed three distinct disclosure patterns and pathways to help-seeking. First, in the voluntary disclosure group, victims told their friends, who encouraged them to tell an adult, who then encouraged--and assisted--the survivors in seeking help. Throughout this process, the survivors' disclosures at each step were within their control and reflected their choices for how to proceed. Second, in the involuntary disclosure pattern, victims also first disclosed to friends, but then those friends told adults about the assault, against the survivors' wishes; the adults made the victims seek help, which was also against the survivors' preferences. Third, in situational disclosures, the survivors were unconscious at the time of the assault, and their friends disclosed and sought help on their behalf. We also examined how these initial disclosure patterns related to victims' continued engagement with these systems.

Coming Out as Lesbian, Gay, or Bisexual: The Lasting Impact of Initial Disclosure Experiences

Though previous research indicates that lesbian, gay, and bisexual (LGB) individuals may benefit from disclosing their sexual identity, or coming out, doing so also carries with it significant risks due to its stigmatized status. LGB individuals (N = 108) were surveyed regarding their initial experiences coming out, including the first person to whom they disclosed, their mother, father, and best friend. Results indicated that negative reactions to disclosure were associated with higher depression and lower self-esteem, whereas positive reactions did not explain additional variance in well-being. Autonomy need satisfaction following disclosure mediated the relation between negative reactions and lower well-being. Discussion focuses on the coming out process and the importance of autonomy support in identity integration and well-being.

A qualitative study of the reactions of young adults with epilepsy to SUDEP disclosure, perceptions of risks, views on the timing of disclosure, and behavioural change

ObjectiveWe examined young adults' responses to information about sudden unexpected death in epilepsy (SUDEP). MethodConsecutive patients attending a specialist epilepsy clinic, aged 16–30years, with a Hospital Anxiety and Depression Scale (HADS) score of <11, and who had been told about SUDEP at least 2weeks previously, were invited to the study. Semistructured in-depth interviews were conducted by an experienced qualitative interviewer until data saturation was achieved. An inductive thematic analysis of the data was conducted, facilitated by the use of the qualitative data analysis software (NVivo). The study was approved by the South East Scotland Research Ethics Committee. ResultsTwenty-seven patients (15 females) aged 18–29years were interviewed. All said that they were satisfied with the information that they had received about SUDEP. However, at the interview, their understanding of SUDEP was often limited and incorrect. Many were not aware of their own SUDEP risk status. Twenty-two (81%) said that everyone should be told about SUDEP. Most thought that disclosure should happen at the time of the diagnosis or soon after, preferably in a face-to-face consultation; clinician judgment on timing was highlighted. Few reported seeking further information on SUDEP for themselves beyond the initial consultation. Most were either untroubled by the initial disclosure of SUDEP or reported initial anxiety that was not long-lasting. A minority reported changing their behavior, for example, improving medication adherence, but most reported no change. The majority expressed a fatalistic view of SUDEP as something outside of their control. SignificanceOur results suggest that clinicians can be more confident that most of their young adult patients want to know about SUDEP, want to be told early, and do not have long-lasting anxiety due to its disclosure. Getting information on SUDEP will not, on its own, increase medication adherence in most patients. Methods to increase patient understanding of SUDEP are needed.

Perceptions of therapist responses to shame disclosures by clients: A quasi-experimental investigation with non-clinical participants

AbstractBackground: Therapist responses to initial shame disclosure in therapy have received little empirical attention. Aim: This study explored different therapeutic responses to shame disclosures in terms of their perceived helpfulness. Responses ranged from complete withdrawal from the feeling (withdrawal) to completely tuning into it (non-withdrawal). Given the tendency of shame to evoke avoidance, participants higher on shame-proneness (as measured by The Experience of Shame Scale) were expected to perceive withdrawal responses to shame as more helpful than non-withdrawal responses. Methodology: Fifty-five non-clinical participants were assessed for shame-proneness before viewing videos of mock therapy sessions showing clients either disclosing shame (two videos) or shock (control condition). Participants then rated the helpfulness of different therapist responses. The responses differed in the degree they allowed the client to withdraw from their emotions. Results: High shame proneness was associat...

Organizational barriers to receiving quality health care: A qualitative study among lung cancer patients and caregivers.

76 Background: For lung cancer patients and caregivers, navigating the healthcare system while coping with the complexities of the illness is challenging. We explored organizational barriers to receiving quality healthcare from the perspectives of these stakeholders. Methods: A qualitative study involving 10 focus groups (5 of patients, 5 of caregivers) was conducted. Discussions were guided by a standardized script, recorded for transcription, and analyzed using Dedoose software. Results: 22 patients (10 Males/12 Females; 15 Caucasians and 7 African Americans) and 24 caregivers (6 Males /18 Females; 17 Caucasians and 7 African Americans) shared their experiences. Content analysis showed 5 recurring themes: (1) Insurance Issues: Delays in diagnosis or treatment were reported due to lack of insurance, lag time in insurance approvals and care processing, uncertainty about coverage, and caps for tests and/or office visits. (2) Appointment Scheduling: Participants reported appointment delays and rescheduling, long wait times, cancellations by providers, and inflexibility to accommodate schedules. (3) Provider Communication: Communication was lacking at times in initial diagnosis disclosure, prognosis and treatment preparation, willingness to answer questions in lay terms, and time dedicated to patients during appointments. (4) Patient Education: Participants had inadequate knowledge about lung cancer, treatment options and duration, prognosis, and relied on providers to educate and direct them to credible resources. Many felt confused, frustrated, anxious, or fatalistic. (5) Healthcare System Support: Participants found support within the healthcare system extremely beneficial, when available, for coping with lung cancer, expediting appointments, seeking information, connecting with physicians, and receiving timely diagnosis and treatments. Conclusions: These findings offer valuable insight into lung cancer patients’ and caregivers’ perspectives on organizational barriers to receiving quality care. By identifying these barriers for lung cancer patients and caregivers, better planning and management of effective cancer services can be developed.

"How should I tell my child?" Disclosing the diagnosis of sex chromosome aneuploidies.

To date, the disclosure of a sex chromosome aneuploidy (SCA) diagnosis to an affected individual has not been explored. This study aimed to assess the timing and content revealed to an affected child by his or her parent(s), resources accessed in preparation, parental feelings of preparedness, common parental concerns, and recommendations for disclosure approaches. Two online surveys were created: 1) for parents of a child with a diagnosis and 2) for individuals with a diagnosis. One-hundred thirty-nine parent surveys (XXY n = 68, XXX n = 21, XYY n = 9, other SCAs n = 41) and 67 individual surveys (XXY n = 58, XXX n = 9) were analyzed. Parents most frequently discussed the topics of learning disabilities (47%) and genetics (45%) with their child during the initial disclosure. A significantly greater proportion of parent respondents reported feeling prepared vs. unprepared for disclosure, regardless of their child's diagnosis (z-test of proportions, all p's < 0.001). Both prepared and unprepared parents most frequently accessed resources such as websites, support groups, and discussion with the child's physician prior to disclosure, with unprepared parents accessing fewer resources (M = 2.0 ± 1.41) than prepared parents [M = 2. ± 1.56; t(101) =-2.02, p < 0.05]. Common parental concerns included making the conversation age-appropriate, discussing infertility, and possible impact on the child's self-esteem. Both parent and individual respondents endorsed being honest with the child, disclosing the diagnosis early and before puberty, and discussing the diagnosis gradually over time. These results provide recommendations for parents, and suggest benefits from additional resources and supports to alleviate concerns when approaching diagnosis disclosure.