scholarly journals Do Innovative Firms Communicate More? Evidence from the Relation between Patenting and Management Guidance

2020 ◽  
pp. 0000-0000
Author(s):  
Sterling Huang ◽  
Jeffrey Ng ◽  
Tharindra Ranasinghe ◽  
Mingyue Zhang
Keyword(s):  
Voluntary Disclosure ◽  
Regulation Fair Disclosure ◽  
Fair Disclosure ◽  
Information Demand ◽  
Disclosure Decisions ◽  
Management Guidance ◽  
Proprietary Cost ◽  
Role Of Information ◽  
Innovation Outcomes

Successful innovations could induce more disclosure if the information asymmetry between the firm and its investors about post-innovation outcomes leads investors to demand more information. However, such innovations also likely entail greater proprietary cost concerns, which deter disclosure. This paper uses patent grants to examine the effect of innovation success on management guidance behavior. We find that more management guidance follows patent grants, suggesting that despite disclosure cost concerns, firms with successful innovations do respond to information demand. This association is stronger after enactment of Regulation Fair Disclosure and for firms with greater institutional investor ownership, further highlighting the role of information demand. The association is weaker for firms with more competition, consistent with proprietary cost concerns having a moderating impact. Overall, our findings suggest that innovation creates demand for more voluntary disclosure and firms' disclosure decisions following innovation outcomes vary in ways that disclosure theory and economic intuition predict.

scholarly journals Goodwill impairment test disclosures under IAS 36: Compliance and disclosure quality, disclosure determinants, and the role of enforcement

2019 ◽  
Vol 16 (1-1) ◽  
pp. 145-167
Author(s):  
Marius Gros ◽  
Sebastian Koch
Keyword(s):  
Voluntary Disclosure ◽  
Strategic Behavior ◽  
Disclosure Quality ◽  
Goodwill Impairment ◽  
Disclosure Requirements ◽  
Quality Disclosure ◽  
Low Levels ◽  
The Cost ◽  
Proprietary Cost

Prior research documented that higher disclosure quality reduces information asymmetry and the cost of capital. Accordingly, firms have an incentive to comply with disclosure requirements and to provide voluntary disclosure. However, prior research on mandatory disclosures on goodwill impairment testing reveals low compliance among European firms. In this paper, we contribute to the literature and assist regulators, enforcers, and standard setters by shedding light on the determinants of the observed low levels of compliance and voluntary disclosure. Consistent with economic theory, we reveal that firms determine the level of disclosure strategically. We find firms with higher preparation and proprietary cost to show lower compliance and less voluntary disclosure while firms with higher growth opportunities provide better compliance and more voluntary disclosure. However, the strategic behavior is constrained by enforcement. Consequently, our results are more (less) pronounced within a weak (strong) enforcement environment.

Information Asymmetry and the Bond Coupon Choice

2017 ◽  
Vol 93 (2) ◽  
pp. 37-59 ◽  
Author(s):  
Dan Amiram ◽  
Alon Kalay ◽  
Avner Kalay ◽  
N. Bugra Ozel
Keyword(s):  
Information Asymmetry ◽  
Regulation Fair Disclosure ◽  
Signaling Mechanism ◽  
Exogenous Shock ◽  
Analyst Coverage ◽  
Fair Disclosure ◽  
Efficient Contract ◽  
Prior Literature

ABSTRACT We examine the role of the coupon choice in bond contracts as a signaling mechanism in the presence of information asymmetry between borrowers and lenders about the credit quality of the borrower. Prior literature focuses on the use of maturity as a signaling mechanism. We conjecture that the coupon is a more effective signaling mechanism. We exploit the enactment of Regulation Fair Disclosure (RegFD) as an exogenous shock to the level of information asymmetry, and employ both bond- and equity market-based variables of information asymmetry to test our conjecture. We find that following the enactment of RegFD, the coupon rates of bonds issued by unrated firms increase relatively more than those of rated firms, consistent with the coupon choice addressing information asymmetry. We fail to find similar increases in maturity. Our inferences remain the same when using the probability of informed trade to measure relative changes in information asymmetry around the enactment of RegFD. We also draw similar conclusions utilizing exogenous drops in analyst coverage that result from brokerage house closures as an alternative quasi-natural experiment. Finally, we provide evidence that the coupon is used more extensively when issuance costs are higher, precisely when maturity is predicted to be a less efficient contract term with which to address information asymmetry. JEL Classifications: G10; G23; M21; M41.

A multi-theoretical approach on drivers of integrated reporting – uniting firm-level and country-level associations

2019 ◽  
Vol 28 (1) ◽  
pp. 168-205 ◽  
Author(s):  
Stephan Fuhrmann
Keyword(s):  
Voluntary Disclosure ◽  
Social Performance ◽  
Listed Companies ◽  
Firm Characteristics ◽  
Integrated Reporting ◽  
Firm Level ◽  
Content Type ◽  
Country Level ◽  
Disclosure Decisions ◽  
Proprietary Cost

Purpose This paper aims to unite firm- and country-level drivers of the disclosure of integrated reports. It creates a synopsis of voluntary disclosure, signaling, proprietary cost, legitimacy, stakeholder and institutional theory. Design/methodology/approach The empirical analyses build on a logistic regression model examining the disclosure decisions for integrated reports published between 2012 and 2016 by the 2,000 largest listed companies worldwide. Findings The results indicate that the disclosure of integrated reports by large listed companies is explained in parallel by multiple theories, operationalized by the firm-level characteristics of lower profitability, a higher market-to-book value, lower leverage, lower level of industry concentration and higher social performance. Additionally, the country-level characteristics of civil law setting and lower investor protection, lower power distance and lower masculinity coincide with the disclosure of integrated reports. Originality/value The inferences emphasize that a single theoretical framework cannot explain the decision to disclose an integrated report. Rather, a set of economic firm characteristics may lead to different disclosure decisions in different socio-economic and institutional environments.

Volatility persistence and asymmetry under the microscope: the role of information demand for gold and oil

2019 ◽  
Vol 66 (1) ◽  
pp. 180-197 ◽  
Author(s):  
Georgios Bampinas ◽  
Theodore Panagiotidis ◽  
Christina Rouska
Keyword(s):  
Volatility Persistence ◽  
Information Demand ◽  
Role Of Information

ROLE OF INFORMATION AND COMMUNICATION TECHNOLOGY (ICT) IN AGRICULTURE FOR RURAL DEVELOPMENT

2017 ◽  
Vol 23 (1) ◽  
pp. 3-8
Author(s):  
R. P. BAIN ◽  
D. P. RAI ◽  
SIDDARTH NAYAK
Keyword(s):  
Rural Development ◽  
Information And Communication Technologies ◽  
Information And Communication Technology ◽  
Communication Technology ◽  
Communication Technologies ◽  
Sustainable Society ◽  
Indian Agriculture ◽  
Information And Communication ◽  
Role Of Information

If we want to convert our rural population into knowledge driven, progressive, self sufficient, self reliant, sustainable society, the role of Information and Communication Technologies (ICT’s) cannot be ignored. Timely availability information is considered as most important factor in Indian agriculture. At present ICT is the technology of this millennium. Transferring the developed technology to all end users is time-consuming and tiresome task and is often not completed due to paucity of resources and lack of manpower. In India, agriculture and rural development has gained significantly from ICT due to its widespread extension and adoption. In this era of internet, ICT is committed to provide real, timely accurate authentic information to the farmers and rural peoples.

The Effect of Information Technology on Fluidity of Contemporary Architectural Space

2019 ◽  
Vol 7 (1) ◽  
pp. 62-72
Author(s):  
Shatha Abbas Hassan ◽  
Noor Ali Aljorani
Keyword(s):  
Information Technology ◽  
Communication Systems ◽  
Research Problem ◽  
Architectural Space ◽  
Human Thought ◽  
Technological Developments ◽  
Ease Of Access ◽  
The Impact ◽  
Role Of Information

The increasing importance of the information revolution and terms such as ‘speed’, ‘disorientation’, and ‘changing the concept of distance’, has provided us with tools that had not been previously available. Technological developments are moving toward Fluidity, which was previously unknown and cannot be understood through modern tools. With acceleration of the rhythm in the age we live in and the clarity of the role of information technology in our lives, as also the ease of access to information, has helped us to overcome many difficulties. Technology in all its forms has had a clear impact on all areas of daily life, and it has a clear impact on human thought in general, and the architectural space in particular, where the architecture moves from narrow spaces and is limited to new spaces known as the ‘breadth’, and forms of unlimited and stability to spaces characterized with fluidity. The research problem (the lack of clarity of knowledge about the impact of vast information flow associated with the technology of the age in the occurrence of liquidity in contemporary architectural space) is presented here. The research aims at defining fluidity and clarifying the effect of information technology on the changing characteristics of architectural space from solidity to fluidity. The research follows the analytical approach in tracking the concept of fluidity in physics and sociology to define this concept and then to explain the effect of Information Technology (IT) to achieve the fluidity of contemporary architectural space, leading to an analysis of the Skidmore, Owings and Merrill (SOM) architectural model. The research concludes that information technology achieves fluidity through various tools (communication systems, computers, automation, and artificial intelligence). It has changed the characteristics of contemporary architectural space and made it behave like an organism, through using smart material.

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