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Discontinued SEC required disclosures: The value of repairs and maintenance expenses

Author

Listed:
  • Behn, Bruce K.
  • Riley, Richard
  • Gotti, Giorgio
  • Brooks, Richard C.

Abstract

On December 13, 1994, the US Securities and Exchange Commission (SEC) eliminated certain schedules including repairs and maintenance (R&M) disclosures previously required in annual reports and registration statements. This SEC decision provides us a research setting where disclosure has been decreased. The purpose of this study is to determine if market participants used R&M information prior to its elimination. The findings indicate that R&M disclosures did provide value-relevant information. Further, the year following the elimination of mandatory R&M disclosures, only 4% of the firms in the sample voluntarily disclosed R&M information. Hence, it appears that decreased disclosures deprived the market participants, not only in principle but also in practice, of value-relevant R&M expenses information. The results also suggest that if R&M disclosures are not required firms will not voluntarily provide the information.

Suggested Citation

  • Behn, Bruce K. & Riley, Richard & Gotti, Giorgio & Brooks, Richard C., 2011. "Discontinued SEC required disclosures: The value of repairs and maintenance expenses," Research in Accounting Regulation, Elsevier, vol. 23(2), pages 184-187.
    • Handle: RePEc:eee:reacre:v:23:y:2011:i:2:p:184-187
    DOI: 10.1016/j.racreg.2011.06.011
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    References listed on IDEAS

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    Cited by:

    1. Bauman, Mark P., 2013. "The adequacy of fixed asset disclosures under U.S. GAAP," Research in Accounting Regulation, Elsevier, vol. 25(2), pages 149-156.
    2. Bianca Raluca BADITOIU & Alexandru BUGLEA & Diana Corina GLIGOR-CIMPOIERU & Valentin Partenie MUNTEANU, 2020. "Csr Disclosure Of Financial European Companies Within Integrated Reports," Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 14(1), pages 924-938, November.
    3. Rupley, Kathleen Hertz & Brown, Darrell & Marshall, Scott, 2017. "Evolution of corporate reporting: From stand-alone corporate social responsibility reporting to integrated reporting," Research in Accounting Regulation, Elsevier, vol. 29(2), pages 172-176.
    4. B. Zimmerman, Aleksandra, 2015. "The JOBS Act disclosure exemptions: Some early evidence," Research in Accounting Regulation, Elsevier, vol. 27(1), pages 73-82.

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