Revising A Voluntary Disclosure Decision

2021 ◽  
Author(s):  
Mark Bagnoli ◽  
Susan G. Watts
Keyword(s):  
Private Information ◽  
Voluntary Disclosure ◽  
Public Information ◽  
Product Market ◽  
Initial Decision ◽  
The Face ◽  
Release Of Information ◽  
The Cost ◽  
Is Value

Public information that becomes available after a manager's initial voluntary disclosure decision creates incentives for her to reconsider and possibly change that decision. We show that if she has private information that is value relevant or that impacts the firms ability to compete in its product market, the option to revise an initial disclosure decision in the face of a public release of information alters both the initial decision and the overall frequency of disclosure. These effects are amplified if she believes that public information arrival is more likely or if the firms value is more sensitive to it. We also show that an increase in the initial disclosure cost reduces the probability of an initial disclosure and increases the probability of a subsequent disclosure. These effects are reversed if the cost of a subsequent disclosure increases.

BIASED VOLUNTARY DISCLOSURE, EARNINGS TARGET, AND PRODUCT MARKET COMPETITION

2017 ◽  
Vol 12 (03) ◽  
pp. 1750014 ◽  
Author(s):  
HAO-CHANG SUNG ◽  
CHUNSHENG YUAN
Keyword(s):  
Private Information ◽  
Voluntary Disclosure ◽  
Market Competition ◽  
Product Market ◽  
Product Market Competition ◽  
Bertrand Competition ◽  
Cost Information ◽  
Oligopoly Model ◽  
Earnings Targets ◽  
Oligopoly Competition

Accounting survey and anecdotal evidence suggest that firms could voluntarily disclose their private information to improve the credibility of earnings targets and to signal meeting /beating of earnings targets. In addition, voluntarily issuing private information can be characterized as a way to influence product market competition. The motivation of this study is to investigate the effect of earnings target on a firm’s voluntary disclosure decision and its impact on oligopoly competition. We consider a two-stage oligopoly model with one-sided incomplete information in which a firm has private information on its type and its marginal cost. We show that a firm can choose a downward biased report about its cost information in Cournot competition. This could increase this firm’s outputs and profits and meet its earnings target as well. In this sense, the effect of earnings target on voluntary disclosure can improve the firm’s competitiveness. In Bertrand competition, a firm can choose an upward biased report about its cost information, and this allows both firms to boost their price level in oligopoly competition and thus both firms can obtain higher profits. In this case, the effect of earnings target on voluntary disclosure could facilitate implicit collusion in price-setting under Bertrand competition. This paper contributes to the research on voluntary disclosure theory in terms of how earnings targets affect product market competition through distorting a firm’s voluntary disclosure decision.

Institutional Investors, Private Information, and the Cost of Capital

2011 ◽  
Author(s):  
Huong Giang (Lily) Nguyen ◽  
Xiangkang Yin ◽  
Luong Hoang Luong
Keyword(s):  
Private Information ◽  
Institutional Investors ◽  
Cost Of Capital ◽  
The Cost

Psychological Impact of Coronavirus (COVID-19) Disease on Cancer Patients

Coronaviruses ◽  
2021 ◽  
Vol 01 ◽  
Author(s):  
Gaurav Dhiman
Keyword(s):  
Cancer Patients ◽  
Related Problem ◽  
Preventive Measures ◽  
Psychological Impact ◽  
Vulnerable Group ◽  
Recommended Care ◽  
Health Related ◽  
The Face ◽  
Mental Trauma ◽  
The Cost

: In this letter, the psychological impact of COVID-19 on cancer infected patients is discussed. Cancer is a serious health-related problem in the human body nowadays. The 2019 pandemic of coronavirus disease has developed into an unheard-of pandemic. Given the havoc wreaked by this pathogen worldwide, many countries have implemented a severe, legally enforced method of social distancing, in the form of a lockdown. Unless adequate preventive measures are taken, the cost of the pandemic and subsequent lockdown can prove to be irreparable. The obvious consequences of this lockout, such as the escalating levels of unemployment, imminent economic crisis, and extreme food scarcity faced by the sudden unemployed migrant labour population, have been widely reported. Cancer patients are a highly vulnerable group even during non-pandemic periods, often presenting late in the course of their illness, without the services required to avail recommended care. The incidence of psychological complications and emotional distress is considerably higher than in the general population, and the trauma of both the pandemic and subsequent lockdown contributes significantly to their mental trauma. This analysis is geared at solving the challenges faced by cancer patients in the face of this pandemic and subsequent lockdown, with a look at potential solutions that can be enforced.

Do Managers Disclose or Withhold Bad News? Evidence from Short Interest

2018 ◽  
Vol 94 (3) ◽  
pp. 1-26 ◽  
Author(s):  
Dichu Bao ◽  
Yongtae Kim ◽  
G. Mujtaba Mian ◽  
Lixin (Nancy) Su
Keyword(s):  
Private Information ◽  
Voluntary Disclosure ◽  
Stock Price ◽  
Data Availability ◽  
Bad News ◽  
General Tendency ◽  
Litigation Risk ◽  
Novel Approach ◽  
Conflicting Evidence ◽  
Short Interest

ABSTRACT Prior studies provide conflicting evidence as to whether managers have a general tendency to disclose or withhold bad news. A key challenge for this literature is that researchers cannot observe the negative private information that managers possess. We tackle this challenge by constructing a proxy for managers' private bad news (residual short interest) and then perform a series of tests to validate this proxy. Using management earnings guidance and 8-K filings as measures of voluntary disclosure, we find a negative relation between bad-news disclosure and residual short interest, suggesting that managers withhold bad news in general. This tendency is tempered when firms are exposed to higher litigation risk, and it is strengthened when managers have greater incentives to support the stock price. Based on a novel approach to identifying the presence of bad news, our study adds to the debate on whether managers tend to withhold or release bad news. Data Availability: Data used in this study are available from public sources identified in the study.

Epilogue: On the Current and Future State of Historical Writing

2018 ◽  
Author(s):  
Allan Megill
Keyword(s):  
Historical Writing ◽  
Conceptual Difficulty ◽  
Universal History ◽  
The Past ◽  
Initial Decision ◽  
Future State ◽  
The Face ◽  
History Of

This epilogue argues that historians ought to be able to produce a universal history, one that would ‘cover’ the past of humankind ‘as a whole’. However, aside from the always increasing difficulty of mastering the factual material that such an undertaking requires, there exists another difficulty: the coherence of universal history always presupposes an initial decision not to write about the human past in all its multiplicity, but to focus on one aspect of that past. Nevertheless, the lure of universal history will persist, even in the face of its practical and conceptual difficulty. Certainly, it is possible to imagine a future ideological convergence among humans that would enable them to accept, as authoritative, one history of humankind.

Accountability and the Media

2014 ◽  
Vol 652 (1) ◽  
pp. 206-221
Author(s):  
Anton Harber
Keyword(s):  
South African ◽  
News Media ◽  
Media Access ◽  
Political Interference ◽  
The Face ◽  
Public Broadcaster ◽  
The Media ◽  
The Government ◽  
The Cost ◽  
Poor Management

Two decades of contestation over the nature and extent of transformation in the South African news media have left a sector different in substantive ways from the apartheid inheritance but still patchy in its capacity to fill the democratic ideal. Change came fast to a newly open broadcasting sector, but has faltered in recent years, particularly in a public broadcaster troubled by political interference and poor management. The potential of online media to provide much greater media access has been hindered by the cost of bandwidth. Community media has grown but struggled to survive financially. Print media has been aggressive in investigative exposé, but financial cutbacks have damaged routine daily coverage. In the face of this, the government has turned its attention to the print sector, demanding greater—but vaguely defined—transformation and threatened legislation. This has met strong resistance.

The Decay of Consent: International Law in an Age of Global Public Goods

2014 ◽  
Vol 108 (1) ◽  
pp. 1-40 ◽  
Author(s):  
Nico Krisch
Keyword(s):  
Human Rights ◽  
Public Goods ◽  
International Law ◽  
International Community ◽  
Global Public Goods ◽  
Community Values ◽  
International Legal Order ◽  
The Face ◽  
Common Policies ◽  
The Cost

The consensual structure of the international legal order, with its strong emphasis on the sovereign equality of states, has always been somewhat precarious. In different waves over the centuries, it has been attacked for its incongruence with the realities of inequality in international politics, for its tension with ideals of democracy and human rights, and for standing in the way of more effective problem solving in the international community. While surprisingly resilient in the face of such challenges, the consensual structure has seen renewed attacks in recent years. In the 1990s, those attacks were mainly “moral” in character. They were related to the liberal turn in international law, and some of them, under the banner of human rights, aimed at weakening principles of nonintervention and immunity. Others, starting from the idea of an emerging “international community,” questioned the prevailing contractual models of international law and emphasized the rise of norms and processes reflecting community values rather than individual state interests. Since the beginning of the new millennium, the focus has shifted, and attacks are more often framed in terms of effectiveness or global public goods. Classical international law is regarded as increasingly incapable of providing much-needed solutions for the challenges of a globalized world; as countries become ever more interdependent and vulnerable to global challenges, an order that safeguards states’ freedoms at the cost of common policies is often seen as anachronistic. According to this view, what is needed—and what we are likely to see—is a turn to nonconsensual lawmaking mechanisms, especially through powerful international institutions with majoritarian voting rules.

Institutional Dual-Holders and Managers' Earnings Disclosure

2021 ◽  
Author(s):  
Leila Peyravan ◽  
Regina Wittenberg-Moerman
Keyword(s):  
Adverse Effect ◽  
Commercial Bank ◽  
Private Information ◽  
Voluntary Disclosure ◽  
Information Environment ◽  
Earnings Forecast ◽  
Excess Returns ◽  
Lending Relationships ◽  
Playing Field ◽  
Information Advantage

We investigate how institutional (non-commercial bank) investors that simultaneously invest in a firm's debt and equity (dual-holders) influence the firm's voluntary disclosure. Because institutional dual-holders trade on private information gleaned through lending relationships, we predict and find that borrowers increase earnings forecast disclosure to reduce these investors' information advantage following the origination of loans with their participation. We also show that the increase in disclosure is stronger when the access to a borrower's private information endows dual-holders with a greater information advantage and when the consequences of this access are likely to be more pronounced. We further find that institutional dual-holders earn excess returns when trading equity of non-guider firms following loan origination, but not when firms issue guidance, confirming that earnings disclosure helps level the playing field among investors. Our findings highlight that firms actively use disclosure to mitigate the adverse effect of dual-holders on their information environment.

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