Biased voluntary disclosure
Authors:
Einhorn, E; Ziv, A
Source:
REVIEW OF ACCOUNTING STUDIES
Date:
2012
Publication Type:
Academic Journal
Subjects:
Financial accounting; Asymmetric information; Voluntary disclosure; Reporting bias; Earnings management; EARNINGS MANAGEMENT; INFORMATION ENDOWMENT; STRATEGIC STABILITY; SIGNALING GAMES; EQUILIBRIUM; FIRMS; UNCERTAINTY; MARKETS; ESSAYS; MODEL; BUSINESS, FINANCE
Abstract:
We provide a bridge between the voluntary disclosure and the earnings management literature. Voluntary disclosure models focus on managers' discretion in deciding whether or not to provide truthful voluntary disclosure to the capital market. Earnings management models, on the other hand, concentrate on managers' discretion in deciding how to bias their mandatory disclosure. By analyzing managers' disclosure strategy when disclosure is voluntary and not necessarily truthful, we show the robustness of voluntary disclosure theory to the relaxation of the standard assumption of truthful reporting. We also demonstrate the sensitivity of earnings management theory to the commonly made mandatory disclosure...sustainability
Biased voluntary disclosureAuthors: Einhorn, E; Ziv, ASource: REVIEW OF ACCOUNTING STUDIESDate: 2012Publication Type: Academic JournalSubjects: Financial accounting; Asymmetric information; Voluntary disclosure; Reporting bias; Earnings management; EARNINGS MANAGEMENT; INFORMATION ENDOWMENT; STRATEGIC STABILITY; SIGNALING GAMES; EQUILIBRIUM; FIRMS; UNCERTAINTY; MARKETS; ESSAYS; MODEL; BUSINESS, FINANCEAbstract: We provide a bridge between the voluntary disclosure and the earnings management literature. Voluntary disclosure models focus on managers' discretion in deciding whether or not to provide truthful voluntary disclosure to the capital market. Earnings management models, on the other hand, concentrate on managers' discretion in deciding how to bias their mandatory disclosure. By analyzing managers' disclosure strategy when disclosure is voluntary and not necessarily truthful, we show the robustness of voluntary disclosure theory to the relaxation of the standard assumption of truthful reporting. We also demonstrate the sensitivity of earnings management theory to the commonly made mandatory disclosure...sustainability
การแปล กรุณารอสักครู่..
