- Publisher
- Elsevier
- Copyright
- Copyright © 2001 Elsevier Science B.V.
- ISSN
- 0165-4101
- DOI
- 10.1016/S0165-4101(01)00025-8
- Publisher site
- See Article on Publisher Site
Abstract
The purpose of this paper is two-fold. First, I attempt a taxonomy of the extant accounting literature on disclosure: that is, a categorization of the various models of disclosure in the literature into well-integrated topics. With regard to the taxonomy, I suggest three broad categories of disclosure research in accounting. The first category, which I dub “association-based disclosure”, is work that studies the effect of exogenous disclosure on the cumulative change or disruption in investors’ individual actions, primarily through the behavior of asset equilibrium prices and trading volume. The second category, which I dub “discretionary-based disclosure”, is work that examines how managers and/or firms exercise discretion with regard to the disclosure of information about which they may have knowledge. The third category, which I dub “efficiency-based disclosure”, is work that discusses which disclosure arrangements are preferred in the absence of prior knowledge of the information, that is, preferred unconditionally. Then, in the final section of the paper, I recommend information asymmetry reduction as one potential starting point for a comprehensive theory of disclosure. That is, I recommend information asymmetry reduction as a vehicle to integrate the efficiency of disclosure choice, the incentives to disclose, and the endogeneity of the capital market process as it involves the interactions among individual and diverse investors.
Journal
Journal of Accounting and Economics – Elsevier
Published: Dec 1, 2001
Recommended Articles
Loading...
References
-
Analysts’ forecasts as proxies for investor beliefs in empirical researchAbarbanell, J.S.; Lanen, W.N.; Verrecchia, R.E.
-
A noisy rational expectations equilibrium for multi-asset securities marketsAdmati, A.R.
-
A monopolistic market for informationAdmati, A.R.; Pfleiderer, P.
-
A theory of intraday patterns: volume and price variabilityAdmati, A.R.; Pfleiderer, P.
-
Selling and trading on information in financial marketsAdmati, A.R.; Pfleiderer, P.
-
On the optimality of public signals in the presence of private informationAlles, M.; Lundholm, R.J.
-
Trading volume reactions to annual accounting earnings announcementsAtiase, R.K.; Bamber, L.S.
-
The relation among capital markets, financial disclosure, production efficiency, and insider tradingBaiman, S.; Verrecchia, R.E.
-
Information acquisition in financial marketsBarlevy, G.; Veronesi, P.
-
Using analysts’ forecasts to measure properties of analysts’ information environmentBarron, O.E.; Kim, O.; Lim, S.C.; Stevens, D.E.
-
International accounting harmonization and global equity marketsBarth, M.E.; Clinch, G.; Shibano, T.
-
Market statistics and technical analysis: the role of volumeBlume, L.; Easley, D.; O'Hara, M.
-
Disclosure level and the cost of equity capitalBotosan, C.A.
-
On technical analysisBrown, D.P.; Jennings, R.H.
-
Public disclosure and the structure of private information marketsBushman, R.M.
-
Voluntary disclosures and trading behavior of corporate insidersBushman, R.M.; Indjejikian, R.
-
A model of two-tiered financial reportingBushman, R.M.; Gigler, F.; Indjejikian, R.
-
Earnings announcements and market depthBushman, R.M.; Dutta, D.; Hughes, J.; Indjejikian, R.
-
Trading volume and serial correlation in stock returnsCampbell, J.; Grossman, S.; Wang, J.
-
Competitive disadvantage and discretionary disclosure in industriesClinch, G.; Verrecchia, R.E.
-
Firm's disclosure and their cost of capital: a discussion of “A Review of the empirical disclosure literature”Core, J.E.
-
Strategic information transformationCrawford, V.; Sobel, J.
-
Disclosure policy and competition: Cournot vs. BertrandDarrough, M.N.
-
Financial disclosure policy in an entry gameDarrough, M.N.; Stoughton, N.M.
-
Noise trader risk in financial marketsDe Long, J.B.; Shleifer, A.S.; Summers, L.H.; Waldmann, R.J.
-
Market response to financial reportsDemski, J.; Feltham, G.
-
Optimal release of information by firmsDiamond, D.W.
-
Information aggregation in a noisy rational expectations economyDiamond, D.W.; Verrecchia, R.E.
-
Constraints on short-selling and asset price adjustment to private informationDiamond, D.W.; Verrecchia, R.E.
-
Disclosure, liquidity, and the cost of capitalDiamond, D.W.; Verrecchia, R.E.
-
Voluntary disclosureDontoh, A.
-
Information content of accounting announcementsDontoh, A.; Ronen, J.
-
Disclosure of nonproprietary informationDye, R.A.
-
Strategic accounting choice and the effects of alternative financial reporting requirementsDye, R.A.
-
Proprietary and nonproprietary disclosuresDye, R.A.
-
Mandatory versus voluntary disclosures: the case of financial and real externalitiesDye, R.A.
-
Investor sophistication and voluntary disclosuresDye, R.A.
-
Industry-wide disclosure dynamicsDye, R.A.; Sridhar, S.S.
-
Cheap talk with two audiencesFarrell, J.; Gibbons, R.
-
Voluntary financial disclosure in an entry game with continua of typesFeltham, G.A.; Xie, J.Z.
-
The effects of line-of-business reporting on competition in oligopoly settingsFeltham, G.A.; Gigler, F.; Hughes, J.S.
-
The effect of limited liability on the market response to disclosureFischer, P.E.; Verrecchia, R.E.
-
Correlated public forecastsFischer, P.E.; Verrecchia, R.E.
-
Public information and heuristic tradeFischer, P.E.; Verrecchia, R.E.
-
Reporting biasFischer, P.E.; Verrecchia, R.E.
-
Disclosure decisions by firms and the competition for firm efficiencyFishman, M.J.; Hagerty, K.M.
-
The optimal amount of discretion to allow in disclosureFishman, M.J.; Hagerty, K.M.
-
Self-enforcing voluntary disclosuresGigler, F.
-
On the frequency, quality, and informational role of mandatory financial reportsGigler, F.; Hemmer, T.
-
International accounting standards for line-of-business reporting and oligopoly competitionGigler, F.; Hughes, J.; Rayburn, J.
-
Bid, ask, and transaction prices in a specialist market with heterogeneously informed tradersGlosten, L.; Milgrom, P.
-
On the efficiency of competitive stock markets where traders have diverse informationGrossman, S.J.
-
Further results on the information efficiency of competitive stock marketsGrossman, S.J.
-
The role of warranties and private disclosure about product qualityGrossman, S.J.
-
Disclosure laws and takeover bidsGrossman, S.J.; Hart, O.D.
-
On the impossibility of informationally efficient marketsGrossman, S.J.; Stiglitz, J.E.
-
Trade and the revelation of information through prices and direct disclosureGrundy, B.D.; McNichols, M.
-
Sufficient and necessary conditions for information to have social value in pure exchangeHakannson, N.H.; Kunkel, J.G.; Ohlson, J.A.
-
Differences of opinion make a horse raceHarris, M.; Raviv, R.
-
Segment reporting to the capital market in the presence of a competitorHayes, R.M.; Lundholm, R.J.
-
Differential information and dynamic behavior of stock trading volumeHe, H.; Wang, J.
-
A review of the empirical disclosure literatureHealy, P.M.; Palepu, K.G.
-
Stock performance and intermediation changes surrounding sustained increases in disclosureHealy, P.M.; Hutton, A.P.; Palepu, K.G.
-
On the aggregation of information in competitive marketsHellwig, M.F.
-
Rational expectations equilibrium with conditioning on past prices: a mean-variance exampleHellwig, M.
-
The private and social value of information and the reward to inventive activityHirshleifer, J.
-
The effect of sequential information releases on the variance of price changes in an intertemporal multi-asset marketHolthausen, R.W.; Verrecchia, R.E.
-
The effect of informedness and consensus on price and volume behaviorHolthausen, R.W.; Verrecchia, R.E.
-
Signaling by direct disclosure under asymmetric informationHughes, P.J.
-
The impact of costly information interpretation on firm disclosure decisionsIndjejikian, R.
-
Truthful disclosure of informationJovanovic, B.
-
Disclosure when the market is unsure of information endowment of managersJung, W.O.; Kwon, Y.K.
-
Differential interpretation of public signals and trade in speculative marketsKandel, E.; Pearson, N.
-
The relation between price changes and trading volume: a surveyKarpoff, J.M.
-
Disagreements among shareholders over a firm's disclosure policyKim, O.
-
Trading volume and price reactions to public announcementsKim, O.; Verrecchia, R.E.
-
Market reactions to anticipated announcementsKim, O.; Verrecchia, R.E.
-
Market liquidity and volume around earnings announcementsKim, O.; Verrecchia, R.E.
-
Pre-announcement and event-period private informationKim, O.; Verrecchia, R.E.
-
Information quality and correlated signalsKirschenheiter, M.
-
Sufficient conditions for public information to have social value in a production and exchange economyKunkel, G.
-
Continuous auctions and insider tradingKyle, A.S.
-
Informed speculation with imperfect competitionKyle, A.S.
-
Speculation duopoly with agreement to disagree: can overconfidence survive the market test?Kyle, A.S.; Wang, F.A.
-
Contract theory and accountingLambert, R.A.
-
The importance of high quality accounting standardsLevitt, A.
-
The aggregation of investors’ diverse judgements and preferences in purely competitive security marketsLintner, J.
-
Price-signal relations in the presence of correlated public and private informationLundholm, R.J.
-
Public signals and the equilibrium allocation of private informationLundholm, R.J.
-
Price signal relations in an imperfectly competitive financial market with public and private informationManzano, C.
-
Private incentives and public informationMarshall, J.M.
-
Quality testing and disclosureMatthews, S.; Postlewaite, A.
-
Public disclosure, private information collection, and short-term tradingMcNichols, M.; Trueman, B.
-
A simple model of capital market equilibrium with incomplete informationMerton, R.C.
-
Good news and bad news: representation theorems and applicationsMilgrom, P.
-
Relying on the information of interested partiesMilgrom, P.; Roberts, J.
-
Information, trade, and common knowledgeMilgrom, P.; Stokey, N.
-
Disclosure policies with multiple usersNewman, P.; Sansing, R.
-
Information accuracy and social welfare under homogeneous beliefsNg, D.
-
Pareto-optimality of authentic informationNg, D.
-
Acquisition and discretionary disclosure of private information and its implications for firms’ productive activitiesPae, S.
-
Noise trading in small marketsPalomino, F.
-
Information quality and voluntary disclosurePenno, M.C.
-
Empirical research in tax accountingShackelford, D.A.; Shevlin, T.
-
News management and the value of firmsShin, H.S.
-
Credibility of voluntary disclosureStocken, P.C.
-
Uncertain precision and price reactions to informationSubramanyam, K.R.
-
Financial reporting in U.S. capital markets: international dimensionsSutton, M.
-
Information disclosure and voluntary contributions to public goodsTeoh, S.H.
-
Nondisclosure and adverse disclosure as signals of firm valueTeoh, S.H.; Hwang, C.Y.
-
Advances in Behavioral FinanceThaler, R.H.
-
Why do managers voluntarily release earnings forecasts?Trueman, B.
-
The impact of analyst following on stock prices and the implications for firms’ disclosure policiesTrueman, B.
-
Information acquisition in a noisy rational expectations economyVerrecchia, R.E.
-
Discretionary disclosureVerrecchia, R.E.
-
Discretionary disclosure and information qualityVerrecchia, R.E.
-
Endogenous proprietary costs through firm interdependenceVerrecchia, R.E.
-
Discussion: ‘Impact of analyst following on stock prices and the implications for firms’ disclosure policies’Verrecchia, R.E.
-
Disclosure and the cost of capital: a discussionVerrecchia, R.E.
-
Voluntary disclosure with a strategic opponentWagenhofer, A.
-
On some systems of equations of mathematical economicsWald, A.
-
Mathematische Theorie der Preisbestimmung der wirtschaftlichen GüterWalras, L.
-
Disclosure policy, information asymmetry, and liquidity in equity marketsWelker, M.
-
Theory of syndicatesWilson, R.
@Phil_Robichaud
@deepthiw
@JoseServera