Independently Certified Industry‐specific Disclosures to the Capital Market: The JORC Code in the Australian Mining Industry.
We investigate compliance with the Australian JORC Code for reporting mineral resources and ore reserves, the quality of the disclosure, and its impact on the capital market. The compliance and quality assessment is conducted by two experienced geologists who find that while the overall reporting qu...
| Published in: | Abacus Vol. 55; no. 1; pp. 128 - 180 |
|---|---|
| Main Authors: | , , , |
| Format: | Article |
| Published: |
Wiley-Blackwell
Mar2019
|
| Subjects: | |
| Online Access: | View this record in EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=hlh&AN=135496782&site=ehost-live header: @attributes: shortDbName: hlh uiTerm: 135496782 longDbName: Humanities International Complete uiTag: AN controlInfo: bkinfo: jinfo: jid: 00013072 AUB jtl: Abacus issn: 00013072 maglogo: Y pubinfo: dt: Mar2019 vid: 55 iid: 1 pid: 480 pub: Wiley-Blackwell artinfo: ui: 135496782 10.1111/abac.12153 ppf: 128 ppct: 52 formats: fmt: – @attributes: type: T – @attributes: type: C – @attributes: type: P size: 647KB tig: atl: Independently Certified Industry‐specific Disclosures to the Capital Market: The JORC Code in the Australian Mining Industry. aug: au: Katselas, Dean Sidhu, Baljit K. Smith, Tom Yu, Chuan affil: Australian National University University of Sydney Macquarie University University of New South Wales (UNSW), Sydney su: Prospecting Capital market Mineral industries Geologists Enterprise value sug: subj: Prospecting Capital market Mineral industries Geologists Enterprise value keyword: Independently certified JORC Code Mineral resources Mining Ore reserves ab: We investigate compliance with the Australian JORC Code for reporting mineral resources and ore reserves, the quality of the disclosure, and its impact on the capital market. The compliance and quality assessment is conducted by two experienced geologists who find that while the overall reporting quality improved after the 2012 revisions to the Code, they disagree on the extent of improvement. This reflects the uncertainties involved and the difficulty in interpreting the reports. Both geologists agree that the greatest improvement is seen in early‐stage projects, consistent with the expectation that there are more uncertainties surrounding these, and the additional information disclosed under the 2012 JORC Code appears to assist in reducing the uncertainties to some extent. The capital markets study shows that JORC announcements have a significant impact on investors' assessments of firm value, and that the announcement impact is higher after the 2012 revisions designed to strengthen the disclosure requirements. This is consistent with post‐2012 JORC reports conveying higher information content. There continues to be information leakage prior to announcement date. Further tests show a widening of bid–ask spreads in the post‐2012 period, suggestive of higher information asymmetry. While the probability of informed trading declines for large firms, it remains statistically unchanged for the rest of the sample. The findings reiterate the need for regulators and standard setters to be cognisant of unintended consequences of their decisions. The substantiation process under JORC involves a delay in the release of 'news', a 'chilling' effect with larger announcement effects. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: Y custom: Copyright of Abacus is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. item: Abacus holder: Wiley-Blackwell dt: @attributes: year: 2019 holdings: @attributes: islocal: N |
|---|