Voluntary Disclosure of Segment Information in a Regulated Environment: Australian Evidence
Tóm tắt
Based on annual report data for a sample of 118 companies listed on the Australian Stock Exchange, this study provides further empirical evidence of the association between the voluntary disclosure of segment information and a firm’s level of diversification; controlling for firm size, industry membership, the level of minority interest, leverage, and ownership diffusion. The period examined falls between the introduction of the first Australian standard on segment disclosure in 1986 and its subsequent revision in 2001. In particular, the study focuses on segment information that was not required to be disclosed in the original standard but which standard setters subsequently felt sufficiently important to include as part of the mandated disclosure requirements in the revised standard. Consistent with expectations, based on both agency theory and proprietary costs theory, our logistic regression results confirm that greater levels of diversification are likely to be associated with additional voluntary segment disclosure.
Tài liệu tham khảo
Aitken, M.J. Hooper C.G. and Pickering, J., 1997. Determinants of voluntary disclosure of segment information: A re-examination of the role of diversification strategy. Accounting and Finance, 37(1), pp.89–109.
Arthur, N. and Knapp, J., 2001. Getting technical: Segment reporting changes are on the way. Charter, 72(4), pp.73–76.
Australian Accounting Standards Board, 2000. Accounting standard AASB 1005: Financial reporting by segments. Australia: Australian Accounting Standards Board.
Berger, P. and Hann, R., 2007. Segment profitability and the proprietary and agency cost of disclosure. The Accounting Review, 82(4), pp.869–906.
Bradbury, M.E., 1992. Voluntary disclosure of financial segment data: New Zealand evidence. Accounting and Finance, 32(1), pp.15–26.
Chenhall, R.H., 1979. Some elements of organisational control in Australian divisionalised firms. Australian Journal of Management, 4(1), Supplement, pp.1–36.
Craswell, A.T. and Taylor S.L., 1992. Discretionary disclosure of reserves by oil and gas companies: An economic analysis. Journal of Business Finance and Accounting, 19(2), pp.295–308.
Darrough, M.N. and Stoughton N.M., 1990. Financial disclosure policy in an entry game. Journal of Accounting and Economics, 12(1–3), pp.219–43.
Dennis, D., 2009. Operating segments: Through management’s eyes. Accountancy Ireland, 41(1), pp.7–12.
Grossman, S.J., 1981. The informational role of warranties and private disclosure about product quality. Journal of Law and Economics, 24(3), pp.461–489.
Gujarati, D.N. 2003. Basic econometrics. New York: McGraw-Hill.
Harris, M.S., 1998. The association between competition and managers’ business segment reporting decisions. Journal of Accounting Research, 36(1), pp.111–128.
Hayes, R.M. and Lundholm, R., 1996. Segment reporting to the capital market in the presence of a competitor. Journal of Accounting Research, 34(2), pp.261–279.
Healy, P.M. and Palepu K.G., 2001. Information asymmetry, corporate disclosures, and the capital markets: A review of the empirical disclosure literature. Journal of Accounting and Economics, 31(1), pp.405–440.
Hope, O. Kang, T. Thomas, W. and Vasvari, F, 2009. The effects of SFAS 131 geographic segment disclosures by US multinational companies on the valuation of foreign earnings. Journal of International Business Studies, 40, pp.421–443.
Hossain, M. and Mitra, S., 2004. Firm characteristics and voluntary disclosure of geographic segment data by US multinational companies. International Journal of Accounting, Auditing and Performance Evaluation, 1(3), pp.288–303.
Jensen, M.C. and Meckling, W.H., 1976. Theory of the firm: Managerial behaviour, agency costs and ownership structure. Journal of Financial Economics, 3(4), pp.305–360.
Kelly, G.J., 1994. Unregulated segment reporting: Australian evidence. British Accounting Review, 26(3), pp.217–234.
McKinnon, J.L. and Dalimunthe, L., 1993. Voluntary disclosure of segment information by Australian diversified companies. Accounting and Finance, 33(1), pp.33–50.
Milgrom, P.R., 1981. Good news and bad news: Representation theorems and applications. The Bell Journal of Economics, 12(2), pp.380–391.
Mitchell, J.D. Chia, C.W.L. and Loh, A.S., 1995. Voluntary disclosure of segment information: Further Australian evidence. Accounting and Finance, 35(2), pp.1–16.
Prencipe, A., 2004. Proprietary costs and determinants of voluntary segment disclosure: Evidence from Italian listed companies. European Accounting Review, 13(2), pp.319–340.
Schipper, K., 1991. Commentary on analysts forecasts. Accounting Horizons, 5 (December), pp.105–121.
Verrecchia, R.E., 1983. Discretionary disclosure. Journal of Accounting and Economics, 5, pp.179–194.
Wagenhofer, A., 1990. Voluntary disclosure with a strategic opponent. Journal of Accounting and Economics, 12(4), pp.341–363.
Whittred, G. and Zimmer, I., 1990. Financial accounting, incentive effects and economic consequences. Sydney: Harcourt Brace Jovanovich.