Advanced Search
MyIDEAS: Login to save this article or follow this journal

Evidence of voluntary accounting disclosures in the Athens Stock Market Purpose – The purpose of this paper is to explore the motives for providing voluntary accounting disclosures and investigate the financial differences between voluntary and non-voluntary disclosers. The paper also examines the association between the provision of voluntary disclosures and earnings management. Design/methodology/approach – The study utilises logistic regressions to test the hypothetical relations set up in the study. The categorisation of firms into those that report the minimum required by law and those that provide voluntary accounting information is based on the examination of firms' financial statements. Company categorisation is based on the construction of an index similar to the disclosure index formulated by the Center for International Financial Analysis and Research. Each sample firm obtains a score, with a higher score reflecting a more significant level of disclosure. Findings – The findings show that voluntary disclosers exhibit higher profitability and growth and appear to be good news bearers. They also display a change in their management and a higher share trading volume. The results provide evidence that the provision of voluntary accounting disclosures is negatively associated with earnings management. Research limitations/implications – The study indicates that sound financial indicators and good news and prospects are likely to motivate firms to provide voluntary disclosures in order to attract investors' attention and communicate their managerial superiority or potential. Less information asymmetry and earnings management would lead to the disclosure of informative accounting information and would subsequently assist investors in making efficient decisions. Originality/value – The contribution of the study lies in the fact that Greece is a particular case because it is a “rules-based” code-law country that involves high levels of standardisation and that has adopted IFRSs that are “principles-based” and involve flexibility in financial reporting and judgment. Also, financial reporting in Greece is less restrictive in terms of disclosure requirements. The findings of the study are useful for financial analysts and investors, as they enable them to understand the financial attributes and motives of firms that provide voluntary disclosures as well as their earnings management inclination

Contents:

Author Info

  • George Iatridis, Panayotis Alexakis
Registered author(s):

    Abstract

    No abstract is available for this item.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.emeraldinsight.com/journals.htm?issn=1475-7702&volume=11&issue=1&articleid=17015666&show=abstract
    Download Restriction: Cannot be freely downloaded

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Bibliographic Info

    Article provided by Emerald Group Publishing in its journal Review of Accounting and Finance.

    Volume (Year): 1 (2012)
    Issue (Month): 1 (February)
    Pages: 73-92

    as in new window
    Handle: RePEc:eme:rafpps:v:11:y:2012:i:1:p:73-92

    Contact details of provider:
    Web page: http://www.emeraldinsight.com

    Order Information:
    Postal: Emerald Group Publishing, Howard House, Wagon Lane, Bingley, BD16 1WA, UK
    Email:
    Web: http://www.emeraldinsight.com/raf.htm

    Related research

    Keywords: Athens Stock Market; Big-4 auditing; Change in management; Disclosure; Earnings management; Greece; Stock exchanges; Stock markets; Voluntary accounting disclosures;

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Ding, Yuan & Hervé, Stolowy & Hope, Ole-Kristian & Jeanjean, Thomas, 2005. "Differences between domestic accounting standards and IAS: measurement, determinants and implications," Les Cahiers de Recherche 826, HEC Paris.
    2. Fields, Thomas D. & Lys, Thomas Z. & Vincent, Linda, 2001. "Empirical research on accounting choice," Journal of Accounting and Economics, Elsevier, vol. 31(1-3), pages 255-307, September.
    3. Lambert, Richard A., 2001. "Contracting theory and accounting," Journal of Accounting and Economics, Elsevier, vol. 32(1-3), pages 3-87, December.
    4. Apostolos K. Apostolou & Konstantinos A. Nanopoulos, 2009. "Voluntary accounting disclosure and corporate governance: evidence from Greek listed firms," International Journal of Accounting and Finance, Inderscience Enterprises Ltd, vol. 1(4), pages 395-414.
    5. Ch. Spathis & M. Doumpos & C. Zopounidis, 2002. "Detecting falsified financial statements: a comparative study using multicriteria analysis and multivariate statistical techniques," European Accounting Review, Taylor & Francis Journals, vol. 11(3), pages 509-535.
    6. Regina M. Anctil & John Dickhaut & Chandra Kanodia & Brian Shapiro, 2004. "Information Transparency and Coordination Failure: Theory and Experiment," Journal of Accounting Research, Wiley Blackwell, vol. 42(2), pages 159-195, 05.
    7. Mary E. Barth & Wayne R. Landsman & Mark H. Lang, 2008. "International Accounting Standards and Accounting Quality," Journal of Accounting Research, Wiley Blackwell, vol. 46(3), pages 467-498, 06.
    8. Bushman, Robert M. & Smith, Abbie J., 2001. "Financial accounting information and corporate governance," Journal of Accounting and Economics, Elsevier, vol. 32(1-3), pages 237-333, December.
    9. Leuz, Christian & Nanda, Dhananjay & Wysocki, Peter D., 2003. "Earnings management and investor protection: an international comparison," Journal of Financial Economics, Elsevier, vol. 69(3), pages 505-527, September.
    10. Brenda van Tendeloo & Ann Vanstraelen, 2005. "Earnings management under German GAAP versus IFRS," European Accounting Review, Taylor & Francis Journals, vol. 14(1), pages 155-180.
    11. George Iatridis & Konstantia Dalla, 2011. "The impact of IFRS implementation on Greek listed companies: An industrial sector and stock market index analysis," International Journal of Managerial Finance, Emerald Group Publishing, vol. 7(3), pages 284-303, June.
    12. Abarbanell, Jeffery & Lehavy, Reuven, 2003. "Biased forecasts or biased earnings? The role of reported earnings in explaining apparent bias and over/underreaction in analysts' earnings forecasts," Journal of Accounting and Economics, Elsevier, vol. 36(1-3), pages 105-146, December.
    13. McKnight, Phillip J. & Weir, Charlie, 2009. "Agency costs, corporate governance mechanisms and ownership structure in large UK publicly quoted companies: A panel data analysis," The Quarterly Review of Economics and Finance, Elsevier, vol. 49(2), pages 139-158, May.
    14. Burgstahler, David & Dichev, Ilia, 1997. "Earnings management to avoid earnings decreases and losses," Journal of Accounting and Economics, Elsevier, vol. 24(1), pages 99-126, December.
    15. Merton, Robert C, 1987. " A Simple Model of Capital Market Equilibrium with Incomplete Information," Journal of Finance, American Finance Association, vol. 42(3), pages 483-510, July.
    16. Igor Goncharov & Joerg Richard Werner & Jochen Zimmermann, 2006. "Does Compliance with the German Corporate Governance Code Have an Impact on Stock Valuation? An empirical analysis," Corporate Governance: An International Review, Wiley Blackwell, vol. 14(5), pages 432-445, 09.
    17. Makridakis, Spyros & Caloghirou, Yannis & Papagiannakis, Lefteris & Trivellas, Panagiotis, 1997. "The dualism of greek firms and management: Present state and future implications," European Management Journal, Elsevier, vol. 15(4), pages 381-402, August.
    18. Apostolos A. Ballas & Christos Tzovas, 2010. "An empirical investigation of Greek firms' compliance to IFRS disclosure requirements," International Journal of Managerial and Financial Accounting, Inderscience Enterprises Ltd, vol. 2(1), pages 40-62.
    19. Joy, O. Maurice & Tollefson, John O., 1975. "On the Financial Applications of Discriminant Analysis," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 10(05), pages 723-739, December.
    20. Ali, Ashiq & Kumar, Krishna R., 1994. "The magnitudes of financial statement effects and accounting choice : The case of the adoption of SFAS 87," Journal of Accounting and Economics, Elsevier, vol. 18(1), pages 89-114, July.
    21. Lang, Mark & Smith Raedy, Jana & Wilson, Wendy, 2006. "Earnings management and cross listing: Are reconciled earnings comparable to US earnings?," Journal of Accounting and Economics, Elsevier, vol. 42(1-2), pages 255-283, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Chiraz Ben Ali, 2014. "Corporate Governance, Principal-Principal Agency Conflicts, and Disclosure," Working Papers 2014-125, Department of Research, Ipag Business School.

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:eme:rafpps:v:11:y:2012:i:1:p:73-92. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Louise Lister).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.