From event-driven to period-driven voluntary earnings disclosure? A value-adding disclosure strategy
David Bourget (Western Ontario)
David Chalmers (ANU, NYU)
Rafael De Clercq
Ezio Di Nucci
Jack Alan Reynolds
Learn more about PhilPapers
International Journal of Business Governance and Ethics 3 (3):274-307 (2007)
Research and practice of Voluntary Earnings Disclosure (VED) as a strategy are limited, notwithstanding its evidenced contribution to firm value. An emerging VED profile is identified, characterised and evaluated. Firms applying it regularly provide VED between quarterly earnings announcements. This profile is compared with the prevailing approach of issuing VED when warranted by events and/or when serving firm or management ad hoc interests. These firms' VEDs are found to be more regular, frequent, timely, and often with confirming content. Their VED events, usually midquarter updates, are often prescheduled and specifically named using period-related terms. These controllable characteristics qualify it as a strategy, termed 'Period-Driven VED', in distinction from 'Event-Driven VED'. The period-driven VED strategy is found to improve a firm's information environment through a reduced information gap, measured by abnormal stock returns, lower analysts' forecast error and dispersion, and fewer surprises around earnings-release dates. The firm's improved information environment leads to lower cost of capital, as evidenced by prior theoretical and empirical research, enhancing firm value.
|Keywords||No keywords specified (fix it)|
|Categories||categorize this paper)|
Setup an account with your affiliations in order to access resources via your University's proxy server
Configure custom proxy (use this if your affiliation does not provide a proxy)
|Through your library|
References found in this work BETA
No references found.
Citations of this work BETA
No citations found.
Similar books and articles
Denis Cormier, Irene M. Gordon & Michel Magnan (2004). Corporate Environmental Disclosure: Contrasting Management's Perceptions with Reality. [REVIEW] Journal of Business Ethics 49 (2):143-165.
Anna M. Cianci & S. Kaplan (2008). The Effects of Management's Preannouncement Strategies on Investors' Judgments of the Trustworthiness of Management. Journal of Business Ethics 79 (4):423 - 444.
Cedric E. Dawkins & John W. Fraas (2010). Beyond Acclamations and Excuses: Environmental Performance, Voluntary Environmental Disclosure, and the Role of Visibility. [REVIEW] Journal of Business Ethics 92 (4):655.
Jeffrey S. Miller (2009). Opportunistic Disclosures of Earnings Forecasts and Non-GAAP Earnings Measures. Journal of Business Ethics 89 (1):3 - 10.
J.-L. W. Mitchell Der Zahvann & Greg Tower (2004). Audit Committee Features and Earnings Management: Further Evidence From Singapore. International Journal of Business Governance and Ethics 1 (s 2-3):233-258.
X. D. Xu, S. X. Zeng & C. M. Tam (2012). Stock Market's Reaction to Disclosure of Environmental Violations: Evidence From China. [REVIEW] Journal of Business Ethics 107 (2):227-237.
Gopal V. Krishnan & Linda M. Parsons (2008). Getting to the Bottom Line: An Exploration of Gender and Earnings Quality. [REVIEW] Journal of Business Ethics 78 (1-2):65 - 76.
Lori Holder-Webb & Jaffrey R. Cohen (2007). The Association Between Disclosure, Distress, and Failure. Journal of Business Ethics 75 (3):301 - 314.
Gary Entwistle, Glenn Feltham & Chima Mbagwu (2006). Misleading Disclosure of Pro Forma Earnings: An Empirical Examination. [REVIEW] Journal of Business Ethics 69 (4):355 - 372.
Hoje Jo & Yongtae Kim (2008). Ethics and Disclosure: A Study of the Financial Performance of Firms in the Seasoned Equity Offerings Market. [REVIEW] Journal of Business Ethics 80 (4):855 - 878.
Added to index2009-01-28
Total downloads29 ( #130,426 of 1,790,258 )
Recent downloads (6 months)13 ( #63,884 of 1,790,258 )
How can I increase my downloads?