Expanded auditor’s reports and voluntary disclosure

IF 2.9 3区 管理学 Q2 BUSINESS, FINANCE
Wenxuan Huang , Weidong Xu , Donghui Li , Jiancheng (Duncan) Liu
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引用次数: 0

Abstract

Employing a panel sample of 5,090 firm-years from 981 UK firms during the period from 2010 to 2016, we investigate the impact of the implementation of expanded auditor’s reports (EARs) on corporate voluntary disclosure. We find that the likelihood and frequency of voluntary disclosure significantly decrease after the implementation of EARs. In addition, the total number of risks of material misstatement (RMMs) has no impact on voluntary disclosure after the implementation of EARs, while certain RMMs categories (i.e., entity rather than account risks, and firm-specific rather than industry-level risks) display a more pronounced impact on corporate voluntary disclosure. In further analysis, we find that the mandatory adoption of EARs increases the proportion of long-term forecasts, riches the content of voluntary disclosure, and elicits a more positive market response to the announcement of voluntary disclosure. Cross-sectional analyses show that the impact of the implementation of EARs on voluntary disclosure can be magnified by a higher level of media coverage, especially breaking news coverage. Our results remain valid after considering various robustness tests and selection bias concerns.
扩大审计报告和自愿披露范围
我们采用 2010 年至 2016 年期间 981 家英国公司的 5,090 个公司年的面板样本,研究了扩大审计报告(EARs)的实施对企业自愿性信息披露的影响。我们发现,实施 EARs 后,自愿披露的可能性和频率都显著下降。此外,重大错报风险(RMMs)的总数在 EARs 实施后对自愿披露没有影响,而某些 RMMs 类别(即实体风险而非账户风险,以及公司特定风险而非行业层面风险)对企业自愿披露的影响更为明显。在进一步的分析中,我们发现强制采用 EARs 会增加长期预测的比例,丰富自愿披露的内容,并引起市场对自愿披露公告更积极的反应。横截面分析表明,更高水平的媒体报道,尤其是突发新闻报道,会放大 EARs 的实施对自愿披露的影响。在考虑了各种稳健性检验和选择偏差问题后,我们的结果仍然有效。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
CiteScore
6.00
自引率
3.00%
发文量
24
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