The value relevance of voluntary disclosure in the annual report

OPEN ARCHIVE

Union Jack
Dannebrog

The value relevance of voluntary disclosure in the annual report

Vis flere oplysninger

Titel: The value relevance of voluntary disclosure in the annual report
Forfatter: Banghøj, Jesper; Plenborg, Thomas
Resume: This paper examines if the level of voluntary disclosure affects the association between current returns and future earnings. Economic theory suggests that firms might find it advantageous to provide additional pieces of information (i.e., voluntary disclosure) to investors and analysts (Verrecchia 1983). Our results indicate that more voluntary disclosure does not improve the association between current returns and future earnings; i.e. current returns do not reflect more future earnings news. This finding raises the question whether voluntary information in the annual report contains value relevant information about future earnings or if investors are simply not capable of incorporating voluntary information in the firm value estimates. Key words: Disclosure, future earnings, informativeness
URI: http://hdl.handle.net/10398/6742
Dato: 2007-01-04

Creative Commons License This work is licensed under a Creative Commons License.

Filer Størrelse Format Vis
artikel_udkast_010606.pdf 521.9Kb PDF Vis/Åbn

Dette dokument findes i følgende samling(er)

Vis flere oplysninger