Showing papers on "Signalling theory published in 2002"
TL;DR: In this paper, the authors investigated whether the voluntary disclosure of ratios in corporate annual reports can be explained by agency and signalling theory and found some evidence of an association between ratio disclosure and company performance, size and industry.
Abstract: This paper investigates whether the voluntary disclosure of ratios in corporate annual reports can be explained by agency and signalling theory. The two theories are discussed and the applicability to explaining ratio disclosures considered. Drawing on agency and signalling theory, seven hypotheses are tested using data collected over five years, for 313 UK companies. More specifically, associations are considered between ratio disclosure and the following characteristics: company profitability; return on investment; gearing; liquidity; company efficiency; size and industry. The paper finds some evidence of an association between ratio disclosure and company performance, size and industry. The implications of these findings are considered and areas of further research discussed.
518 citations