Discretionary Disclosure: A Note.
This article extends the models of discretionary disclosure. The level of disclosure will be affected by the costs of such disclosure. Verrecchia (1983) shows that when the cost of disclosure is fixed then the threshold level of disclosure is positively related to that cost. Verrecchia (1990a) shows...
| Publicado en: | Abacus Vol. 37; no. 2; pp. 233 - 248 |
|---|---|
| Autor principal: | |
| Formato: | Artículo |
| Publicado: |
Wiley-Blackwell
Jun2001
|
| Materias: | |
| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=hlh&AN=4889777&site=ehost-live header: @attributes: shortDbName: hlh uiTerm: 4889777 longDbName: Humanities International Complete uiTag: AN controlInfo: bkinfo: jinfo: jid: 00013072 AUB jtl: Abacus issn: 00013072 maglogo: Y pubinfo: dt: Jun2001 vid: 37 iid: 2 pid: 480 pub: Wiley-Blackwell artinfo: ui: 4889777 10.1111/1467-6281.00085 ppf: 233 ppct: 15 formats: fmt: – @attributes: type: T – @attributes: type: P size: 116KB tig: atl: Discretionary Disclosure: A Note. aug: au: Richardson, Scott su: Disclosure Financial disclosure sug: subj: Disclosure Financial disclosure ab: This article extends the models of discretionary disclosure. The level of disclosure will be affected by the costs of such disclosure. Verrecchia (1983) shows that when the cost of disclosure is fixed then the threshold level of disclosure is positively related to that cost. Verrecchia (1990a) shows that in the presence of fixed disclosure costs the threshold level of disclosure is negatively related to the quality of information (precision) to be disclosed. The intuition for the result is that as information is more precise, withholding it is more detrimental for the firm and hence the threshold for disclosure is lowered. The model here expands the cost of disclosure to be a function of information quality. When this is the case, the Verrecchia (1990a) unambiguous result does not hold. The presence of information quality in the cost function creates a countervailing force such that more precise information does not necessarily imply more disclosure. This creates the intuitive result that precise information of a proprietary nature might be withheld from the market. 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: 2001 holdings: @attributes: islocal: N |
|---|