Continuous disclosure and information asymmetry

Russell, Mark (2015) Continuous disclosure and information asymmetry. Accounting Research Journal, 28 2: 195-224. doi:10.1108/ARJ-11-2013-0085


Author Russell, Mark
Title Continuous disclosure and information asymmetry
Journal name Accounting Research Journal   Check publisher's open access policy
ISSN 1030-9616
1839-5465
Publication date 2015-09-07
Sub-type Article (original research)
DOI 10.1108/ARJ-11-2013-0085
Open Access Status Not Open Access
Volume 28
Issue 2
Start page 195
End page 224
Total pages 30
Place of publication Bingley, United Kingdom
Publisher Emerald Group Publishing
Collection year 2016
Language eng
Formatted abstract
Purpose:  This paper aims to examine whether firms with high information asymmetry disclose more information under a continuous disclosure regime, and, second, the paper examines whether continuous disclosures reduce information asymmetry.

Design/methodology/approach:  The study models relations between continuous disclosures and information asymmetry using ordinary least squares regression and two-stage least squares regression.

Findings:  The study finds firms with high information asymmetry disclose more information. Further, the study finds that disclosure in the presence of high information asymmetry increases asymmetry. Finally, while bad news increases information asymmetry, the disclosure of firm-specific good and bad news is associated with reduced information asymmetry.

Originality/value:  The paper identifies conditions under which Continuous Disclosure Regime increases information in markets and influences information asymmetry.
Keyword Continuous disclosure
Firm performance expectations
Information asymmetry
Q-Index Code C1
Q-Index Status Confirmed Code
Institutional Status UQ

Document type: Journal Article
Sub-type: Article (original research)
Collections: Official 2016 Collection
UQ Business School Publications
 
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