Disclosure of reserve quantum in the extractive industries |
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Authors: | Malik Mirza,& Ian Zimmer |
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Affiliation: | School of Accountancy, Queensland University of Technology, Brisbane, Australia,;UQ Business School, The University of Queensland, St Lucia, Queensland 4072, Australia |
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Abstract: | We explore why some firms in the extractive industries disclose mineral reserve quantum in their annual reports and others do not. We propose that the firms' reserve disclosure policies are a function of the extent of information asymmetries, as well as information production, litigation and proprietary costs. More specifically, we propose that a firm's decisions to disclose reserves in the annual report are a function of the stage of the firm's operations, use of project financing, and the cost of measuring reserves. Empirical tests are confirmatory. |
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Keywords: | Disclosure Reserve quantum Extractive industries |
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