Private Litigation Costs and Voluntary Disclosure: Evidence from the Morrison Ruling

2018 ◽  
Vol 94 (3) ◽  
pp. 303-327 ◽  
Author(s):  
James P. Naughton ◽  
Tjomme O. Rusticus ◽  
Clare Wang ◽  
Ira Yeung
Keyword(s):  
Voluntary Disclosure ◽  
Causal Effect ◽  
Data Availability ◽  
Supreme Court Ruling ◽  
Securities Litigation ◽  
Listed Firms ◽  
The Public ◽  
Country Level ◽  
The Right ◽  
Private Litigation

ABSTRACT We examine the causal effect of expected private litigation costs on voluntary disclosure using a natural experiment, the Supreme Court ruling in Morrison v. National Australia Bank. Even though this ruling had no effect on what constituted fraudulent conduct for the purpose of securities litigation, it significantly reduced the expected private litigation costs for foreign cross-listed firms by reducing the pool of potential claimants. It did so by eliminating the right of shareholders who purchased shares on non-U.S. exchanges from seeking compensation in U.S. courts. In the post-Morrison period, we find consistent evidence showing a decrease in voluntary disclosure using analyses that exploit the varying impact of the ruling based on both firm- and country-level attributes. Unlike a number of prior studies, we find that the positive relation between litigation and disclosure does not depend on the direction of the news. JEL Classifications: G15; G18; M41. Data Availability: Data are available from the public sources cited in the text.

Corporate Reporting of Nonfinancial Leading Indicators of Economic Performance and Sustainability

2012 ◽  
Vol 26 (1) ◽  
pp. 65-90 ◽  
Author(s):  
Jeffrey R. Cohen ◽  
Lori L. Holder-Webb ◽  
Leda Nath ◽  
David Wood
Keyword(s):  
Economic Performance ◽  
Voluntary Disclosure ◽  
Data Availability ◽  
Leading Indicators ◽  
Nonfinancial Information ◽  
The Public ◽  
Corporate Reporting ◽  
Recent Developments ◽  
Alternative Sources ◽  
Corporate Social

SYNOPSIS The call for disclosure of nonfinancial information has grown in response to the awareness that financial statements omit salient information about the company (Adams et al. 2011). This study follows earlier studies of nonfinancial disclosures of governance and corporate social responsibility information (Holder-Webb et al. 2008, 2009) and examines the public voluntary disclosure of a set of leading indicators of economic performance and sustainability of earnings provided during 2004 by a sample of 50 publicly traded firms across five industries. The results indicate that, among the sample firms, there remains a lack of rigorous and expansive disclosure of this type of information and that considerable variability exists in disclosure practice based on both industry and size. For example, companies disclose a wide variety of nonfinancial information both through mandatory filings such as 10-Ks and through alternative sources such as investor promotion materials and company websites, with the most frequent types of disclosures being concerned with information pertaining to market share and innovation. We conclude by discussing the role of this study within recent developments in integrative reporting (Adams et al. 2011) and suggest that these types of disclosures would benefit from the availability of assurance services. Data Availability: All information used in this paper is available from public sources.

Voluntary Disclosure of Country-Level Information and FCPA Violations

2020 ◽  
pp. 0148558X2098220
Author(s):  
Joseph Legoria ◽  
Kenneth J. Reichelt ◽  
Jared Soileau
Keyword(s):  
Voluntary Disclosure ◽  
Control Group ◽  
Supporting Evidence ◽  
Government Officials ◽  
Foreign Corrupt Practices Act ◽  
Listed Firms ◽  
Country Level ◽  
Foreign Government ◽  
Level Information ◽  
Foreign Operations

The Foreign Corrupt Practices Act (FCPA) of 1977 prohibits U.S. listed firms from bribing foreign government officials for business purposes. We examine whether less transparent firms are more likely to violate the FCPA by testing whether their voluntary disclosure of country-level information explains the violation. We hand-collect voluntarily disclosed geographic information for firms cited for FCPA violations and for a matched control group of nonviolators. We test whether less transparent disclosure of operations (sales and long-lived assets) abroad explains whether firms violate the FCPA. We find supporting evidence. Next, we compare the transparency of FCPA violators that self-reported their violations with the transparency of our control group, as well as the transparency of non-self-reporters to the transparency of our control group. Regulators sanction self-reporters with lower penalties than non-self-reporters. We find that the former are as transparent as the nonviolators. Yet, non-self-reporters are less transparent, suggesting that they drive our results. Overall, our results suggest that more transparent reporting of foreign operations is associated with FCPA compliance. Our study contributes to understanding whether voluntary disclosure signals FCPA compliance, following disclosure theory and instrumental stakeholder theory.

Institutional Ownership, Peer Pressure, and Voluntary Disclosures

2017 ◽  
Vol 93 (4) ◽  
pp. 283-308 ◽  
Author(s):  
Yupeng Lin ◽  
Ying Mao ◽  
Zheng Wang
Keyword(s):  
Voluntary Disclosure ◽  
Peer Pressure ◽  
Institutional Ownership ◽  
Data Availability ◽  
Management Forecasts ◽  
Voluntary Disclosures ◽  
Index Funds ◽  
The Public ◽  
Industry Peers ◽  
Identification Strategy

ABSTRACT We document peer effect as an important factor in determining corporate voluntary disclosure policies. Our identification strategy relies on a discontinuity in the distribution of institutional ownership caused by the annual Russell 1000/2000 index reconstitution. Around the threshold of the Russell 1000/2000 index, the top Russell 2000 index firms experience a significant jump in institutional ownership compared with their closely neighbored bottom Russell 1000 index firms due to index funds' benchmarking strategies. The increase in institutional ownership and resultant improvement in the information environment of the top Russell 2000 index firms create pressures on their industry peers to increase voluntary disclosures. Consistent with this prediction, we find that the discontinuously higher institutional ownership of the top Russell 2000 index firms significantly increases industry peers' likelihood and frequency of issuing management forecasts. Further analyses show that such an effect could be driven by firms' incentive to compete for capital. JEL Classifications: G23; G34; M41; D80. Data Availability: Data are available from the public sources cited in the text.

scholarly journals Ownership structure and corporate voluntary disclosure-evidence from Taiwan

2009 ◽  
Vol 6 (4) ◽  
pp. 128-134
Author(s):  
Grace M. Liao ◽  
Chilin Lu
Keyword(s):  
Ownership Structure ◽  
Voluntary Disclosure ◽  
Information Disclosure ◽  
Disclosure Quality ◽  
Information Transparency ◽  
Listed Firms ◽  
The Public ◽  
Proprietary Information ◽  
Low Levels ◽  
Transparency And Disclosure

Compared to western markets, listed firms in East Asia typically have low levels of information transparency and do not motivate to disclose proprietary information to the public. One of the most frequently cited reasons for the low level of transparency and disclosure quality is poor corporate governance structures in this region. In this study, we explore the association between ownership structure and voluntary information disclosure in Taiwan. Annual report index data from Information Disclosure and Transparence Ranking System (IDTRS) are used as the proxy of the firm’s voluntary information. The empirical results indicate that the level of information disclosure is likely to be less in “insider” or family-controlled companies.

Revealing Future Prospects without Forecasts: The Case of Accelerating Material Contract Filings

2013 ◽  
Vol 88 (5) ◽  
pp. 1769-1804 ◽  
Author(s):  
Edward Xuejun Li
Keyword(s):  
Voluntary Disclosure ◽  
Market Competition ◽  
Cost Benefit ◽  
Data Availability ◽  
Management Forecasts ◽  
Future Prospects ◽  
Conference Calls ◽  
The Public ◽  
Proprietary Cost ◽  
Forward Looking

ABSTRACT: Extant research on voluntary disclosure about future prospects has focused on two forward-looking disclosure mechanisms: management forecasts and conference calls. This study examines the accelerated filing of material contracts as another type of future-related disclosure that involves no forecasting. I find that firms are more likely to accelerate material contract filings when forward-looking disclosures could lack credibility or arouse litigation concerns. However, for proprietary cost considerations, firms delay contract filings when facing high (low) product market competition from incumbents (potential entrants). I also find that accelerated contract filing is incrementally associated with lower information asymmetry. Overall, while presenting a cost-benefit trade-off that is distinctly different from forward-looking disclosures, accelerated contract filing is an important alternative channel through which firms communicate future prospects to investors. Data Availability: The data used in this study are available from the public sources identified in the paper. Contact the author for any specific data requests.

Promosi Dan Informasi Media Audio Visual Berbentuk Video Profile Pada SMK PGRI 11 Ciledug Kota Tangerang

CICES ◽  
2017 ◽  
Vol 3 (1) ◽  
pp. 35-47
Author(s):  
Faisal Rudiansyah Hamzah ◽  
Panji Wira Soma ◽  
Indri Rahmawati
Keyword(s):  
Information Technology ◽  
Print Media ◽  
Visual Media ◽  
Message Delivery ◽  
The Public ◽  
Existing Problems ◽  
The Media ◽  
The Right

With the development of information technology in particular in the field of multimedia in such rapid and the longer forms of media information more diverse so that more education institutions boast. Media information and promotion is currently used by SMK PGRI 11 Ciledug Tangerang. The purpose of this research audio visual media into the media information and proper promotion, by controlling hearing and vision in the form of audio visual in order to convey messages can be understood by the public at large. Existing problems, namely the medium used by the SMK PGRI 11 Ciledug Tangerang still use print media such as banners, posters and pamplet are considered less effective and efficient to use while simultaneously promoting the institutions with the best possible audio visual media so that it is selected into a medium of information and promotion of the right, by controlling hearing and vision in the form of audio visual. Because therein lies the message delivery process or how to visualize. At the same time listening and showing the contents of the message to the recipient with information through media menunjangnya, so the design of video media profile that displays the entire scope, advantages and facilities belonging to SMK PGRI 11 Ciledug Tangerang, can be a solution in solving problems in media promotion and information. With this study the author makes with the title "promotion and INFORMATION AUDIO VISUAL MEDIA SHAPED VIDEO PROFILE on SMK PGRI 11 APPLICATIONS TANGERANG CITY ".

Tanggung Jawab Hukum Penilai Publik terhadap Laporan Penilaian Kegiatan Pengadaan Tanah bagi Pembangunan untuk Kepentingan Umum (Studi Atas Kantor Jasa Penilai Publik Toto Suharto)

2020 ◽  
Vol 2 (1) ◽  
Author(s):  
Gagah Yaumiyya Riyoprakoso ◽  
AM Hasan Ali ◽  
Fitriyani Zein
Keyword(s):  
Future Development ◽  
Public Interest ◽  
Legal Responsibility ◽  
Legal Research ◽  
The Public ◽  
The Government ◽  
Conducting Research ◽  
The Right ◽  
The Relationship ◽  
Systematic Explanation

This study is based on the legal responsibility of the assessment of public appraisal reports they make in land procurement activities for development in the public interest. Public assessment is obliged to always be accountable for their assessment. The type of research found in this thesis is a type of normative legal research with the right-hand of the statue approach and case approach. Normative legal research is a study that provides systematic explanation of rules governing a certain legal category, analyzing the relationship between regulations explaining areas of difficulty and possibly predicting future development. . After conducting research, researchers found that one of the causes that made the dispute was a lack of communication conducted between the Government and the landlord. In deliberation which should be the place where the parties find the meeting point between the parties on the magnitude of the damages that will be given, in the field is often used only for the delivery of the assessment of the compensation that has been done.

The Priority of Public Reasons and Religious Forms of Life in Constitutional Democracies

2019 ◽  
Vol 11 (4) ◽  
pp. 45
Author(s):  
Cristina Lafont
Keyword(s):  
Public Sphere ◽  
Religious Beliefs ◽  
Public Deliberation ◽  
The Public ◽  
Difficult Question ◽  
Political Deliberation ◽  
Forms Of Life ◽  
The Public Sphere ◽  
The Right ◽  
Mutual Accountability

In this essay I address the difficult question of how citizens with conflicting religious and secular views can fulfill the democratic obligation of justifying the imposition of coercive policies to others with reasons that they can also accept. After discussing the difficulties of proposals that either exclude religious beliefs from public deliberation or include them without any restrictions, I argue instead for a policy of mutual accountability that imposes the same deliberative rights and obligations on all democratic citizens. The main advantage of this proposal is that it recognizes the right of all democratic citizens to adopt their own cognitive stance (whether religious or secular) in political deliberation in the public sphere without giving up on the democratic obligation to provide reasons acceptable to everyone to justify coercive policies with which all citizens must comply.

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