Year: 2025
Type: article
Abstract: ABSTRACT The Ebert, Simons, and Stecher (2017) disclosure model predicts that weaker firms, i.e., those that have lower operating performance, will make more disaggregated discretionary disclosures than stronger firms, a result somewhat at odds with traditional discretionary disclosure theory that predicts that stronger firms are more likely to voluntarily disclose. We use the IPO S-1 filing setting to test Ebert et al. (2017) and find that higher S-1 disaggregated discretionary disclosure quantity is significantly associated with lower operating performance. Our setting and analyses also plausibly rule out several alternative explanations. JEL Classifications: G30; K22; M40.
Source: Journal of Financial Reporting
DOI: 10.2308/jfr-2024-020
Authors: Venky Nagar, Jordan Schoenfeld
Institutions: University of Michigan, The Ohio State University
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: bronze
OpenAlex ID: W4409498799