Does location matter for disclosure? Evidence from geographic segments

Autor:	Arnt Verriest, Edith Leung
Přispěvatelé:	Business Economics, Accounting Group
Jazyk:	angličtina
Rok vydání:	2019
Předmět:	Attractiveness PROPRIETARY INFORMATION proprietary disclosure costs Agency cost ComputingMethodologies_IMAGEPROCESSINGANDCOMPUTERVISION Social Sciences COMPETITION DETERMINANTS Accounting Business & Economics 0502 economics and business IFRS 8 ANALYSTS FORECAST ACCURACY segment reporting RISK Empirical work 050208 finance INTERNATIONAL DIVERSIFICATION CONSEQUENCES Earnings 05 social sciences Assertion Contrast (statistics) 050201 accounting Business Finance FIRM Business Management and Accounting (miscellaneous) Demographic economics Business Finance Barriers to entry STANDARDS
Zdroj:	Journal of Business Finance and Accounting, 46(5-6), 541-568. Wiley-Blackwell Publishing Ltd
ISSN:	1468-5957 0306-686X
Popis:	This paper uses a novel approach to examine motives for geographic segment disclosure. It is generally assumed that firms prefer not to disclose disaggregated segment information for proprietary reasons, although there is mixed support for this assertion in empirical work. We develop an approach that uses the location characteristics of geographic segments to empirically identify reasons for withholding or disclosing segments. Using hand- collected segment data around a switch in reporting standards that forced firms to reveal more disaggregated segment information, we find that proprietary costs are the main determinant of geographic segment disclosure. We find that segments in wealthier areas and ranked better for business tend to be hidden, while higher entry barriers to a segment's location are positively related to the likelihood of a segment being disclosed. We also find that among previously unrevealed segments, proprietary costs also explain the non-disclosure of segment earnings and other information. In contrast, the attractiveness of a segment and entry barriers do not explain the amount of disclosed information for segments that were already disclosed prior to the switch in reporting standards. The findings suggest that proprietary, rather than agency costs, are a more important determinant of geographic segment disclosure.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_dedup___::40e85626cbf844b4788acb8e04813efb https://pure.eur.nl/en/publications/ce215b10-1f1f-4edf-8275-68ba5c6cb8f4 Zobrazit plný text záznamu Plný text ve formátu PDF Plný text ve formátu HTML
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