Strategic Disclosures of Litigation Loss Contingencies When Customer-Supplier Relationships Are at Risk

Ling Cen; Feng Chen; Yu Hou; Gordon D. Richardson

doi:10.2308/accr-51869

Strategic Disclosures of Litigation Loss Contingencies When Customer-Supplier Relationships Are at Risk

The Accounting Review ◽

10.2308/accr-51869 ◽

2017 ◽

Vol 93 (2) ◽

pp. 137-159 ◽

Cited By ~ 7

Author(s):

Ling Cen ◽

Feng Chen ◽

Yu Hou ◽

Gordon D. Richardson

Keyword(s):

At Risk ◽

Supply Chain ◽

Repeated Game ◽

Bad News ◽

Good News ◽

Supplier Relationships ◽

Strategic Disclosure ◽

Disclosure Patterns ◽

Jel Classifications

ABSTRACT In the presence of litigation-facing suppliers, the supply chain relationship is at risk. Suppliers with principal customers (dependent suppliers) have a higher concentration of sales to customers, and they are more at risk relative to suppliers without principal customers (non-dependent suppliers). As a result, we predict and find that litigation disclosure patterns differ for the two supplier types: dependent suppliers are more likely to delay bad news and accelerate good news related to litigation outcomes, compared to non-dependent suppliers. Such strategic disclosure patterns in our end-game setting are opposite to those documented in the existing supply chain literature for the repeated-game setting (for example, Hui, Klasa, and Yeung 2012). JEL Classifications: M41; M48; K22.

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Restrictions on Managers' Outside Employment Opportunities and Asymmetric Disclosure of Bad versus Good News

The Accounting Review ◽

10.2308/accr-52314 ◽

2018 ◽

Vol 94 (5) ◽

pp. 1-25 ◽

Cited By ~ 13

Author(s):

Ashiq Ali ◽

Ningzhong Li ◽

Weining Zhang

Keyword(s):

Opposite Effect ◽

Career Concerns ◽

Bad News ◽

Good News ◽

Corporate Disclosure ◽

Employment Opportunities ◽

Disclosure Policy ◽

The U.S ◽

Jel Classifications

ABSTRACT This study examines the effect of restrictions on managers' outside employment opportunities on voluntary corporate disclosure. The recognition of the Inevitable Disclosure Doctrine (IDD) by courts in the U.S. states in which the firms are headquartered places greater restrictions on their managers from joining or forming a rival company. We find that, on average, the IDD adoption increases the asymmetric withholding of bad news. We further show that the IDD adoption increases the asymmetric withholding of bad news relative to good news for firms whose managers are mainly concerned about losing their current job. However, an opposite effect is observed for firms whose managers are mainly interested in seeking promotion elsewhere. Furthermore, these effects are less pronounced for firms subject to greater monitoring of their disclosure policy. These results suggest that managers' career concerns affect corporate disclosure policy, and the effect varies with the type of career concerns. JEL Classifications: D82; M4.

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Discretionary Aggregation

The Accounting Review ◽

10.2308/accr-51434 ◽

2016 ◽

Vol 92 (1) ◽

pp. 73-91 ◽

Cited By ~ 3

Author(s):

Michael Ebert ◽

Dirk Simons ◽

Jack D. Stecher

Keyword(s):

Private Information ◽

Voluntary Disclosure ◽

Bad News ◽

Good News ◽

News Source ◽

Hide Information ◽

Many Sources ◽

Jel Classifications

ABSTRACT We study a disclosure decision for a firm's manager with many sources of private information. The presence of multiple numerical signals provides the manager with an opportunity to hide information via aggregation, presenting net amounts in order to show information in its best light. We show that this ability to aggregate fundamentally changes the nature of voluntary disclosure, due to the market's inability to verify that a report is free of strategic aggregation. We find that, in equilibrium, the manager fully discloses if and only if the manager's private information makes the firm look sufficiently weak. By separating bad news from good news, a disaggregate report informs the market of as much offsetting news as possible, revealing how close the news is to a neutral benchmark. The result is, therefore, pooling at the top and separation at the bottom, the opposite of what transpires with a single news source. JEL Classifications: M41; D82; D83.

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MODEL NON LINIER GARCH (NGARCH) UNTUK MENGESTIMASI NILAI VALUE at RISK (VaR) PADA IHSG

E-Jurnal Matematika ◽

10.24843/mtk.2015.v04.i02.p090 ◽

2015 ◽

Vol 4 (2) ◽

pp. 59

Author(s):

I KOMANG TRY BAYU MAHENDRA ◽

KOMANG DHARMAWAN ◽

NI KETUT TARI TASTRAWATI

Keyword(s):

At Risk ◽

Value At Risk ◽

Risk Measure ◽

Risk Measurement ◽

Bad News ◽

Good News ◽

Investment Risk ◽

Positive Return ◽

Is Value

In investment, risk measurement is important. One of risk measure is Value at Risk (VaR). There are many methods that can be used to estimate risk based on VaR framework. One of them Non Linier GARCH (NGARCH) model. In this research, determination of VaR used NGARCH model. NGARCH model allowed for asymetric behaviour in the volatility such that “good news” or positive return and “bad news” or negative return. Based on calculations of VaR, the higher of the confidence level and the longer the investment period, the risk was greater. Determination of VaR using NGARCH model was less than GARCH model.

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THE NEW LOSS RECOUPMENT RULES—GOOD NEWS, BAD NEWS

The APPEA Journal ◽

10.1071/aj05037 ◽

2006 ◽

Vol 46 (1) ◽

pp. 569

Author(s):

J.H. Murray

Keyword(s):

At Risk ◽

Federal Government ◽

Income Tax ◽

Oil And Gas ◽

Bad News ◽

Good News ◽

Total Income ◽

Medium Level ◽

The Government

The Federal Government has proposed to change the tests to enable companies to recoup losses for tax purposes. There is some good news and some bad news. This paper will discuss the changes and comment on how the changes may impact oil and gas companies.The good news is that the continuity of ownership rules will be changed for widely-held companies from 1 July 2002, to simplify compliance. In essence, stakeholders of less than 10% will be attributable to a single notional entity, making it easier to test whether there has been a sufficient continuity of ownership to pass this test.The bad news is that the government also proposes to remove the same business test for companies whose total income is more than A$100 million. This is proposed to apply to losses incurred in income years commencing on or after 1 July 2005.With oil at US$60 per barrel it is likely there will be a number of oil producers whose income will exceed the A$100 million test, particularly where there has been an accelerated development of the fields. It is also possible given the high costs of exploration and move into production that companies may have undeducted losses for income tax purposes. The problem is that for junior/ medium level producers particularly, equity transactions are not uncommon and the opportunities for breaching the continuity of ownership test are increased. Without access to the same business test these losses may be at risk of being lost permanently.It may be possible to structure an instrument that enables the oil producer to issue paper resembling equity in certain ways, without causing a breach of the continuity of ownership. The paper discusses this and other issues in relation to the proposal.

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Soldiers at Risk for Individual Readiness or Morale Problems during a Six-Month Peacekeeping Deployment to the Sinai

Psychological Reports ◽

10.2466/pr0.2000.87.2.623 ◽

2000 ◽

Vol 87 (2) ◽

pp. 623-633 ◽

Cited By ~ 5

Author(s):

Walter R. Schumm ◽

D. Bruce Bell

Keyword(s):

At Risk ◽

Longitudinal Data ◽

Outcome Measures ◽

Bad News ◽

Good News ◽

Magic Bullet ◽

Family Issues ◽

Leadership Success ◽

Overseas Deployment ◽

Positive Effect

Longitudinal data were examined to predict soldiers' morale, satisfaction with Army life, and the effects of family issues on performance of duties during an overseas deployment (Sinai peacekeeping force during the spring of 1995). Few variables were significant predictors of the outcome measures; however, rank, leaders' support for families, prior satisfaction with Army life and with information released about the deployment appeared to predict better outcomes during the deployment. Rank and leaders' support for families appeared to be more important for married soldiers while satisfaction with predeployment information seemed to be more important for single soldiers. Those who were worried about the effects of the deployment on their families also tended to report interference with their duty performance because of family concerns, but that effect was offset by perceived leaders' concern for families. In conclusion, it appears to the authors that the pre-existing factors studied had much less to do with deployment outcomes than did leadership success before and during the deployment. That's good news for Army leaders about their power to have a positive effect on soldiers' morale during overseas deployments but may be bad news for anyone hoping to find a “magic bullet” for pre-identification of soldiers most likely to retain high morale, regardless of their leadership's competence during an overseas deployment.

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