A Review On Disclosure Practices

The cause of poor transparency, however, is less important than its effect on a company 's ability to give investors the critical information they need to value their investments. If investors neither believe nor understand financial statements, the performance and fundamental value of that company remains either irrelevant or distorted. Mounting evidence suggests that the market gives a higher value to firms that are upfront with investors and analysts. Transparency pays, companies with fuller disclosure win more trust from investors. Relevant and reliable information means less risk to investors and thus a lower cost of capital, which naturally translates into higher valuations. Of course, there are two ways to interpret this evidence. One is that the market rewards more transparent companies with higher valuations because the risk of unpleasant surprises is believed to be lower. The other interpretation is that companies with good results usually release their earnings earlier. Companies that are doing well have nothing to hide and are eager to publicize their good performance. It is in their best

In this research paper the authors want to express their thoughts by stating that how to them earnings reporting pertains to the discovery of information that has not been disclosed by either people or other types of sources and focus towards the negative in this study. In my opinion, the title of the paper itself could have had a different title only because throughout the paper it analyzes negative or bad news rather than really paying attention to both perspectives. Also the paper captures the information or news that occurs by using a three day window in which Quarterly Earnings Announcement (QEA) take place and compares it to a period where it does not take place. Furthermore, in this paper there are three hypotheses that arise

This paper provides an in-depth evaluation of Sarbanes-Oxley Act, which is said to be promoted to produce change in the corporate environment, in general, by stressing issues of public accountability and disclosure in the financial operations of business. It explains how this is an Act that represents the government 's and the Security and Exchange Commission 's concern in promoting ethical standards in terms of financial disclosure in the corporate environment.

As the population of Latin America and the Caribbean ballooned to 190% increase in 1995, the living conditions of these people have steadily deteriorated. In 1990, 40 percent lived in poverty. The region’s per capita gross domestic product (GDP) had declined since 1980. On the contrary, while the majority of Latin America suffer deprivation, a tiny benefit from economic boom brought about in large measure by the selling of public assets and the opening of the region’s labor market to multinational companies. U.S. corporations and their subsidiaries earned $16.2 billion in profit in 1995.

Baruch Lev and Feng Gu authors of “The End of Accounting and The Path Forward for Investors and Managers” indicate that over the past 110 years, the structure and content of financial reports has not changed, and that the role that these reports play in influencing the decisions of investors has greatly diminished. Lev and Gu make a case that non-transaction events that are not captured by the financial reports such as those disclosed through 8-k filings with the Securities and Exchange Commission (“SEC”) have a greater impact on stock prices, and thus more useful to investors. In addition, they suggest that one of reasons for the decline in usefulness of financial reports stems from the increase of estimates that has made its way into these reports (Lev and Gu 2016).

Important notice: ASX has published this abridged guide to assist listed entities and their officers to understand and comply with their continuous disclosure obligations under the Listing Rules. Nothing in this guide necessarily binds ASX in the application of the Listing Rules in a particular case. In issuing this guide, ASX is not providing legal advice. Listed entities and their officers should obtain their own advice from a qualified professional person in respect of their obligations. ASX may withdraw or replace this guide at any time without further notice to any person. More detailed guidance on the issues covered in this guide can be found in ASX Listing Rules Guidance Note 8 Continuous Disclosure: Listing Rules 3.1 – 3.1B,

Prior to the legislation of Sarbanes-Oxley Act, the regulations of financial statement were much more lax than current. There were only the rules declared by the SEC, the 1933 and 1934 securities laws (Carol, J., 2005). These laws required public companies to disclose the corporate information and have an independent party who reviewed and assured the company’s financial report. The public trusted the financial reports which were audited by the auditors and used in making investment decision. However, no one gave precedence to the accuracy and transparency of the financial information. Hence, many companies’ management took advantage of the lax reporting rules by manipulating the financial statement to make financial

Additionally Savin-Williams (2001) stated, Youths do not usually come out to their father because they do not feel close to him and they fear his negative reactions. The feeling that the present time is not the right developmental time in their relationship with their father to come out is another reason that youths have for withholding information. The sons often feel that they do not have a loving and supportive father. They long for intimacy and are saddened that they lack it. The fathers probably are simply clueless or unable to provide intimacy. The belief that the present is not the most opportune time to disclose is often rooted in the trepidation that the development of the gay child’s relationship with his father will be negatively affected by the disclosure. Issues of moral condemnation and eternal

I shall keep in strictest confidence and shall not disclose to any participant or other third party at any time (i.e., prior to, during, or after the taping or broadcast of any episode of the project) any information or materials of any kind relating to the project, including without limitation, any information or materials concerning or relating to Starhaus Entertainment, Its subsidiaries, affiliated entities, officers, directors, employees or contractors, its parents, subsidiaries, affiliated entities, officers, the business of, any project produced by (“PRODUCER”) or (“NETWORK”) and/or broadcast by Starhaus Entertainment, including, without limitation, any information concerning or relating to the project, the project participants, the events contained in the Project or the outcome of any episode of the project, that I read, hear or otherwise acquire or learn in connection with or as a result of my performing services with respect to the project.

In today’s global economy, investors must rely on information provided by the various companies listed on the stock exchanges in order to determine if a company is a good investment, or a poor one. In order to make informed decisions, investors want to see financial statements that have been proven to be correct; they do not want to risk losing the amounts they have invested if they were to choose to invest in a company that was not being truthful about their financial standings. To reduce this risk, publicly traded companies must have and audit of their annual financial statements. These audits are meant to reduce the risk of misleading numbers skewing how the company is

This paper provides an in-depth evaluation of Sarbanes-Oxley Act, which is said to be promoted to produce change in the corporate environment, in general, by stressing issues of public accountability and disclosure in the financial operations of business. It explains how this is an Act that represents the government's and the Security and Exchange Commission's concern in promoting ethical standards in terms of financial disclosure in the corporate environment.

In the article “Textual risk disclosures and investors risk perceptions” by Kravet and Mushu (2011), the authors provided evidence that textual risk disclosures in annual reports corresponds with a similar amount of increase or decrease in the stock price and increased volatility in the volumes traded in the market, these disclosures are a mean for the managers to send signals about future firm performance to the investors who can then use the information to make a rational decision. The authors research 4315 firms between the years 1994 and 2007 leading to a sample of 28,110 observations for their article. The authors test how the investors and analyst’s behavior changes during the two months before and after the filings of the 10 – K reports the authors collect their data from. The test is conducted by linking the various test variables such as changes in stock returns, changes in volume traded by linking them amongst other variables to changes in management's forecasts, changes in risk disclosures, changes in sales, changes in institutional

The article discusses that in 1976 the U.S. Supreme Court ruled in one case that omitted financial statement information altering a reasonable investor’s decision proves the material nature of the information. The article continues by describing that lower courts earlier ruled that all financial information whether material or not must have full disclosure in a company’s financial statements. The rejection of the lower courts’ ruling by the U.S. Supreme Court gives the investor the ability to focus on the aspects of the financial statements that are most important by allowing the elimination of minute details (Sauer 2007, 317-357). In essence, this ruling allows for the elimination of financial information below the determined materiality threshold unless otherwise required by the ruling of a regulatory body.

Thirdly, the principle demand investment institutions to disclose the information of environmental, social and governance issues appropriately. The company is required to provide standardised reporting on these issues, Meanwhile, merge ESG issues into annual financial reports. Moreover, the company should provide information relating to adoption of relevant standards or codes of conduct. To disclose ESG issue on reports could prevent some companies from doing some harmful investments to the ESG issues for the purpose of making profits. Lunar Capital Management do have the RI Transparency Report to disclose the relevant aspects about the company and ESG issues. In addition, it also has appropriate financial reports for all portfolio firms to increase the transparency, such as weekly KPI reports.

This paper examines the impact of multi-layer governance (MLG) mechanisms, consisting of board and ownership structures, Sharia supervisory board (SSB) and country-level governance characteristics on the level of risk disclosure by banks. Using one of the most extensive datasets on MLG and risk disclosure to-date from 14 countries in the Middle East and North Africa (MENA) region over the period of 2006 to 2013, we find a positive and statistically significant link between our MLG measures and risk disclosure. Specifically, we find that governmental ownership, family ownership, SSB, board size, non-executive directors and control of corruption, are positively related to bank level of risk disclosure whilst CEO duality, political stability and absence of violence are associated negatively with risk disclosure, but statistically insignificant. Our empirical findings are largely in line with the predictions of our multi-theoretical framework that incorporates insights from agency, signalling, legitimacy, and resources dependence theories. Our findings are robust to alternative firm- and country-level controls, alternative MLG mechanisms and risk disclosure proxies, alternative estimation techniques, and endogeneity problems.