The effects of firm size,corporate governance quality,and bad news on disclosure compliance |
| |
Authors: | Mike Ettredge Karla Johnstone Mary Stone Qian Wang |
| |
Institution: | (1) School of Business, University of Kansas, 1300 Sunnyside Ave., Lawrence, KS 66045-7585, USA;(2) School of Business, University of Wisconsin, Madison, WI, USA;(3) Culverhouse School of Accountancy, University of Alabama, Tuscaloosa, AL, USA;(4) College of Business, Iowa State University, Ames, IA, USA |
| |
Abstract: | Motivated by calls for increased compliance, size-based regulation, and continued exemption of small firms from internal control
reporting requirements, we assess the incremental effects of firm size, corporate governance quality, and bad news on disclosure
compliance. We examine compliance with the disclosure requirements of an SEC-mandated filing that requires no computations
or complex judgments but is nonroutine and may reveal value-decreasing information (bad news) that otherwise would not become
public. The disclosures studied are those that firms provide in Form 8-K Item 4 when changing external auditors. We find that
noncompliant firms have lower quality corporate governance and less need for external financing but are not smaller than compliant
control firms. Additional analyses indicate that compliance is negatively associated with bad news. |
| |
Keywords: | |
本文献已被 SpringerLink 等数据库收录! |
|