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The Relationships between Mandatory and Voluntary Disclosures: Unobservable Precision Choices by Management

Author

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  • Toru Ishikawa

    (Graduate School of Economics, Osaka University)

Abstract

This paper examines the effects of mandatory disclosure information on unobservable precision choices by management of voluntary disclosure. Prior research articles investigate the precision of information disclosed by management, but they do not consider the relationships between mandatory and voluntary disclosure information. In this paper, I focus on the relation- ships and analyze precision choices under the situation that there are manda- tory and voluntary disclosure. I find that mandatory disclosure information influences precision choices of voluntary disclosure.

Suggested Citation

  • Toru Ishikawa, 2015. "The Relationships between Mandatory and Voluntary Disclosures: Unobservable Precision Choices by Management," Discussion Papers in Economics and Business 15-09, Osaka University, Graduate School of Economics.
    • Handle: RePEc:osk:wpaper:1509
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    File URL: http://www2.econ.osaka-u.ac.jp/library/global/dp/1509.pdf
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    References listed on IDEAS

    as
    1. Penno, M, 1996. "Unobservable precision choices in financial reporting," Journal of Accounting Research, Wiley Blackwell, vol. 34(1), pages 141-149.
    2. Mark Bagnoli & Susan G. Watts, 2007. "Financial Reporting and Supplemental Voluntary Disclosures," Journal of Accounting Research, Wiley Blackwell, vol. 45(5), pages 885-913, December.
    3. Verrecchia, Robert E., 2001. "Essays on disclosure," Journal of Accounting and Economics, Elsevier, vol. 32(1-3), pages 97-180, December.
    4. Eti Einhorn, 2005. "The Nature of the Interaction between Mandatory and Voluntary Disclosures," Journal of Accounting Research, Wiley Blackwell, vol. 43(4), pages 593-621, September.
    5. Dye, Ronald A., 2001. "An evaluation of "essays on disclosure" and the disclosure literature in accounting," Journal of Accounting and Economics, Elsevier, vol. 32(1-3), pages 181-235, December.
    6. Hughes, J.S.John S. & Pae, Suil, 2004. "Voluntary disclosure of precision information," Journal of Accounting and Economics, Elsevier, vol. 37(2), pages 261-289, June.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Mandatory Disclosure; Voluntary Disclosure; Unobservable; Preci- sion choice; Relationship;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M48 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Government Policy and Regulation

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