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Journal Article

The Effects of Materiality Threshold and Managersۥ Voluntary Incentives on Disclosure of Information in the Financial Statement of Companies Listed in Tehran Stock Exchange

TL;DR: In this paper, mandatory and voluntary incentives of disclosure, in the financial statement as a whole, have been tested in a sample of 98 companies active in Tehran stock exchange (TSE) and audited by Iran Auditing Organization (IAO).
Abstract: In this research, mandatory and voluntary incentives of disclosure, in the financial statement as a whole, have been tested. A sample of 98 companies active in Tehran stock exchange (TSE) and audited by Iran Auditing Organization (IAO) selected to test the research hypotheses. Study period selected, 1379 and 1380, as the fiscal year of before and after of the obligation to comply audit manual partially revised to include audit risk management as a base for materiality threshold. Research results is showed statistically significant impact of disclosure variables, include materiality threshold, earning response coefficient (ERC), proprietary cost (pc), on the disclosure in the financial statements. But the impact for the amount of capital provided by the company was no statistically significant.
Citations
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01 Jan 2008
TL;DR: In this paper, the authors used the concept from earnings response literature and extended with banking risk management measures to find out whether the estimated financial risks have incremental content beyond earnings, which suggests the relevant of the credit exposure in the Australia banks using the latest data.
Abstract: Financial institutions are often treated differently from non-financial businesses. Therefore, this paper uses the concept from earnings response literature and extended with the banking risk management measures to find out whether the estimated financial risks have incremental content beyond earnings. This new procedure discovers that Australia investors priced the credit risk, which is measure by the provision for bad and doubtful debts, significantly in the earnings response valuation. This finding suggests the relevant of the credit exposure in the Australia banks using the latest data.

2 citations

References
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Journal ArticleDOI
TL;DR: Corporate disclosure is critical for the functioning of an efficient capital market as mentioned in this paper, and firms provide disclosure through regulated financial reports, including the financial statements, footnotes, management discussion and analysis, and other regulatory filings.
Abstract: Corporate disclosure is critical for the functioning of an efficient capital market. Firms provide disclosure through regulated financial reports, including the financial statements, footnotes, management discussion and analysis, and other regulatory filings. In addition, some firms engage in voluntary communication, such as management forecasts, analysts? presentations and conference calls, press releases, internet sites, and other corporate reports. Finally, there are disclosures about firms by information intermediaries, such as financial analysts, industry experts, and the financial press.

5,443 citations


"The Effects of Materiality Threshol..." refers background in this paper

  • ...Prepare of financial reporting based of managers ۥreporting decision [22], or in other word based on managers ۥ mandatory and voluntary incentives, is one of the best important case in the literature of information disclosure....

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Journal ArticleDOI
TL;DR: In this paper, the authors examined the earnings-related disclosures made by a random sample of 93 NASDAQ firms during 1981-90 and found that good news disclosures tend to be point or range estimates of annual earnings-per-share (EPS), while bad news disclosures tended to be qualitative statements about the current quarter's earnings; the (unconditional) stock price response to bad
Abstract: This paper provides evidence on corporate voluntary disclosure practices through an examination of the earnings-related disclosures made by a random sample of 93 NASDAQ firms during 1981-90.' I find that, consistent with prior studies, earnings-related voluntary disclosures occur infrequently (on average, one disclosure for every ten quarterly earnings announcements); good news disclosures tend to be point or range estimates of annual earnings-per-share (EPS), while bad news disclosures tend to be qualitative statements about the current quarter's earnings; the (unconditional) stock price response to bad

2,438 citations


"The Effects of Materiality Threshol..." refers background in this paper

  • ...The cost of litigation risk appears when the manager withholds the firmsۥ news, especially bad news [13],[16],[27],[29],[37],[38],[39],[46]....

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  • ...Skinner (1994) suggests that firms will voluntarily disclosure bad news....

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Journal ArticleDOI
TL;DR: In this paper, a set of guidelines for what to expect in an article using logistic regression techniques are discussed. But they do not cover the application of logistic methods to a data set in testing a research hypothesis.
Abstract: The purpose of this article is to provide researchers, editors, and readers with a set of guidelines for what to expect in an article using logistic regression techniques. Tables, figures, and charts that should be included to comprehensively assess the results and assumptions to be verified are discussed. This article demonstrates the preferred pattern for the application of logistic methods with an illustration of logistic regression applied to a data set in testing a research hypothesis. Recommendations are also offered for appropriate reporting formats of logistic regression results and the minimum observation-to-predictor ratio. The authors evaluated the use and interpretation of logistic regression presented in 8 articles published in The Journal of Educational Research between 1990 and 2000. They found that all 8 studies met or exceeded recommended criteria.

2,171 citations

Journal ArticleDOI
TL;DR: This paper examined factors influencing the voluntary disclosures of three types of information (strategic, non-financial, financial) contained in the annual reports of MNCs from the U.S., U.K. and Continental Europe.
Abstract: This study examines factors influencing the voluntary disclosures of three types of information (strategic, nonfinancial, financial) contained in the annual reports of MNCs from the U.S., U.K. and Continental Europe. While company size, country/region, listing status, and, to a lesser extent, industry are the most important factors explaining voluntary disclosures overall, the importance of the factors varies by information type.

1,394 citations


Additional excerpts

  • ...In models (Verrecchia, 2001), theatricals and empirical researches, which as in advanced countries (Cooke, 1989; Meek et al, 1995; Depoers, 2000; Collett & Hrasky, 2005) or emerging countries (Hossain et al, 1995; Chau & Gray, 2002; Ferguson, 2002; Al-Razeen & Karbhari, 2004; Leventis & Weetman…...

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Journal ArticleDOI

1,346 citations


"The Effects of Materiality Threshol..." refers background in this paper

  • ...The cost of litigation risk appears when the manager withholds the firmsۥ news, especially bad news [13],[16],[27],[29],[37],[38],[39],[46]....

    [...]