Quantitative Positive Disclosures With Quantitative Negative Disclosures

Because corporations are established to profit and shareholders invest money with expectations of a greater return, managers cannot be given a directive to be “socially responsible” without providing specific criteria of checks and balances to which needs to adhere. Therefore, it is imperative to the success of a corporation for managers to not act solely but rather to act within the policies of the shareholders.

The financial crisis of the early 2000s left many investors and stockholders nervous about the accuracy of financial statements issued by public companies. The financial crisis resulted after many previously successful companies suddenly tanked due to restatement of their financials. These companies include Enron, Tyco, Sunbeam, Rite-Aid, Xerox and WorldCom amongst others (Kieso, 2014, p. 17). How could many previously successful companies suddenly go belly-up? The evidence was to be seen, these companies had used malicious accounting techniques to hide massive amounts of debts and increase their assets without having to show them accurately in a fair and honest way on their financial statements.

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.

Some agree that the term disclosure is known as ‘the action of making new or secret information known,’ while others, particularly in the electronic dance music scene, provide a whole other meaning. Two brothers, Howard and Guy Lawrence, make up the English electronic music duo known as Disclosure. Popularized for making pop-structured songs in the style of house music and garage, this brotherly duo has quickly tapped in to the fan base of electronic dance music fans worldwide; creating a demand for more styles similar to Disclosure’s. Who would have thought that the blend between pop, house, and garage music would become such a hit? But with a name just of that of Disclosure’s there is no doubt that the duo has brewed up some new beats that fans will be longing to give a listen to. There is much reason why the second studio album released, Caracal, on September 25, 2015 was nominated for Best Dance/ Electronica Album at the 2016 Grammy Awards.

Enron case makes us rethink the ethical aspects of business. Indeed, it is indisputable the idea of the need for transparent practice in companies. Managers, investors, and employees should have access to statements and balance sheets to be inside of all the information. Therefore, identifies, records, measures, and enables the analysis and prediction of economic events that changes the equity of a company. In the case analyzed, the documentary “The Smartest Guys in the Room”, one of the investors questioned why Enron did not make such disclosure.

In addition to analyzing the information, disclosers also consider the quality of relationship with the audience, and predict how the audience is likely to respond when making disclosure decisions (Greene, 2009). Typically, individuals will choose to disclose to those with whom they have a higher relational closeness and quality, while concealing with those who are more distant. However, situations arise that contradict these assumptions, as in the case of public disclosure of private information. The individuals in this study disclose to an audience that varies in relational closeness. Researchers have not yet accounted for individuals who reveal private information in public; consequently, they do not understand what rules govern these individuals’ decisions. In this

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

To gain or maintain legitimacy ,we might rely on disclosure within our annual report. Unlike many other 'resources', legitimacy is a resource that the organisation is considered to be able to impact or manipulate through various disclosure-related strategies(Woodward et al.,1996).

Leading companies Berkshire Hathaway Inc. and Enron Corporation have both formulated annual reports on the course of their business relations, “To the Shareholders of Berkshire Hathaway Inc.” (2000) and “Outdistance the Competition” (2000), respectively. These annual reports try to appeal to the companies’ audience while also asserting how they will continue to develop their companies to increase profits. The authors of the reports proceed by delving into how the companies have done in the past to build a sort of trust with the reader before explaining what their goals are and how they will accomplish those goals. The authors establish different tones in their reports, but it’s evident that their intended audience is the same –

Generally speaking, socially responsible investors spur corporate practices that advocate environmental stewardship, consumer protection, human rights, and diversity. Some shun businesses specialized in alcohol, tobacco, gambling, pornography, weapons, and/or the military. The focus of concern recognized by the SRI industry can be summed up as environment, social justice, and corporate governance — as in

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.

Reporting and disclosure: Measurement and control are at the heart of initiating reasonable practices. Not only can associations gather and group the data, they can likewise be altogether straightforward with outsiders. The Global Reporting Initiative is one of numerous samples of very much perceived reporting models;

Given as the capitalistic world is not all too convinced by altruism, these investments are unjustified to the entrepreneurial mind if they exist only to detract from the company’s profitability. However, analyzing the short-term and long-term consequences for the company’s operations and workforce, its consumers, and its shareholders, it can be argued that environmentally responsible decisions can contribute to its profitability.

Accounting restatement has been a hot subject for academic research since the recent high profile financial reporting failures. Much of the academic research on restatements has explored the causes and consequences of financial statement restatements (Kinney and McDaniel 1989; Dechow et al. 1996; Hribar and Jenkins 2004; Kinney et al. 2004; Palmrose et al. 2004; Desai et al. 2006; Karpoff et al. 2008; Plumlee and Yohn 2010; Schmidt and Wilkins 2011). This investigation is driven by the assumption that weak corporate governance partially explains financial reporting failures and accounting restatements (Abbott, Parker, and Peters 2004; Argawal and Chadha 2005; Srinivasan 2005). This paper extends the restatement literature by investigating