Voluntary Disclosure vs. Mandatory Disclosure: The Case of IFRS Introduction on European Firms
de La Bruslerie, Hubert; Gabteni, Heger (2012-02), Voluntary Disclosure vs. Mandatory Disclosure: The Case of IFRS Introduction on European Firms. https://basepub.dauphine.fr/handle/123456789/13645
TypeDocument de travail / Working paper
External document linkhttp://dx.doi.org/10.2139/ssrn.2010326
MetadataShow full item record
Abstract (EN)The purpose of this study is to determine if the process of filtering out the financial information voluntary disclosed by firms is modified by the introduction of new mandatory information requirement. Voluntary information disclosed by French firms during the 2003-2008 period is compiled. This original dataset includes several years both before and after the introduction of the IFRS in the European Union in 2005. We use regression analysis to identify the determinants and consequences of the communications policies of listed firms. Particularly, we show that highly communicative firms may reduce the information asymmetry as measured by the dispersion of analysts’ earnings forecasts when they voluntarily disclose information. The level of voluntary disclosure and earnings forecasts by analysts are endogenous and exhibit a complex two-way relationship. Voluntary communication policies did not change with the introduction of the IFRS.
Subjects / KeywordsPublication score; Voluntary disclosure; Financial communication; Information policy; IFRS introduction; Analysts’ forecasts
Showing items related by title and author.
Voluntary Financial Disclosure, Introduction of IFRS and the Setting of a Communication Policy: an Empirical Test on SBF French Firms Using a Publication Score de La Bruslerie, Hubert; Gabteni, Heger (2010) Communication / Conférence
Risk aversion and institutional information disclosure on the European carbon market : a case-study of the 2006 compliance event Chevallier, Julien; Ielpo, Florian; Mercier, Ludovic (2009) Article accepté pour publication ou publié
Information asymmetry, contract design and process of negotiation: The stock options awarding case Deffains-Crapsky, Catherine; de La Bruslerie, Hubert (2008-04) Article accepté pour publication ou publié