The Trade-Off between Mandatory and Voluntary Disclosure: Evidence from Oil Companies’ Risk Reporting

Theoretical propositions suggest that mandatory and voluntary disclosures are related. Empirical studies focusing on this relationship provide mixed evidence as they found that mandatory and voluntary disclosures are either complements or substitutes. Relying on a proprietary, hand-collected database about the risk disclosure of oil companies, we find that voluntary risk disclosure increases with the level of mandatory risk disclosure up to a threshold above which companies reduce their voluntary disclosures. We also find that this relationship depends on the firm-level uncertainty, and it is sharpened in the presence of high exposure to liquidity risk. Overall, our results contribute to the debate on whether and on which level disclosure should be regulated. JEL Classification: M41, G14

Download Full-text

Risk Disclosures in the Annual Reports of Italian Listed Companies

FINANCIAL REPORTING ◽

10.3280/fr2013-003007 ◽

2014 ◽

pp. 141-168

Author(s):

Lorenzo Neri ◽

Antonella Russo

Keyword(s):

Voluntary Disclosure ◽

Stock Exchange ◽

Empirical Work ◽

Annual Reports ◽

Risk Disclosure ◽

Listed Firms ◽

Risk Disclosures ◽

The Relationship ◽

Increases In Risk ◽

Risk Reporting

The study examines the relevance of risk reporting in the field of firm voluntary disclosure with an empirical work on Italian listed firms. The motivation of this study is the implementation of the Directive 51/2003/CE in Italy (D.Lgs. 32/2007), a sample of companies listed on the Italian Stock Exchange is selected to investigate the relationship between risk disclosure and company characteristics. This paper explores whether there are significant increases in risk reporting over a period of five years and investigates if risk disclosure is influenced only by new law requirement or also by other possible drivers. A content analysis is performed to obtain a measure of risk narrative disclosure. Then several hypothesis tests are carried out to verify whether there are any corporate differences between companies with different levels of risk disclosure, using univariate and multivariate analysis. Our results on the first question document significant increases in Italian companies' levels of risk disclosures. We find also that the disclosure is not only determined by the new law requirements but also by other drivers such as company size.

Download Full-text

A Flow-Preserving Algorithm for the Time-Cost Trade-Off Problem

IIE Transactions ◽

10.1080/05695558208974589 ◽

1982 ◽

Vol 14 (2) ◽

pp. 109-113 ◽

Cited By ~ 4

Author(s):

Suleyman Tufekci

Keyword(s):

Time Cost ◽

Trade Off

Download Full-text

Dual Goals for Speed and Accuracy on the Same Performance Task

Journal of Personnel Psychology ◽

10.1027/1866-5888/a000063 ◽

2012 ◽

Vol 11 (3) ◽

pp. 118-126 ◽

Cited By ~ 3

Author(s):

Olive Emil Wetter ◽

Jürgen Wegge ◽

Klaus Jonas ◽

Klaus-Helmut Schmidt

Keyword(s):

Memory Scanning ◽

Performance Task ◽

Performance Tasks ◽

Trade Off ◽

Test Experiment ◽

Trade Offs ◽

New Finding ◽

Sternberg Paradigm ◽

Speed Accuracy ◽

Speed And Accuracy

In most work contexts, several performance goals coexist, and conflicts between them and trade-offs can occur. Our paper is the first to contrast a dual goal for speed and accuracy with a single goal for speed on the same task. The Sternberg paradigm (Experiment 1, n = 57) and the d2 test (Experiment 2, n = 19) were used as performance tasks. Speed measures and errors revealed in both experiments that dual as well as single goals increase performance by enhancing memory scanning. However, the single speed goal triggered a speed-accuracy trade-off, favoring speed over accuracy, whereas this was not the case with the dual goal. In difficult trials, dual goals slowed down scanning processes again so that errors could be prevented. This new finding is particularly relevant for security domains, where both aspects have to be managed simultaneously.

Download Full-text