Information Disclosure, Product Market Competition, and Firm Value
Information Disclosure, Product Market Competition, and Firm Value

Author: Kung-Cheng Ho

Publisher:

Published: 2016

Total Pages: 57

ISBN-13:

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This study examines the relationship between information disclosures and firm value under different levels of product market competition. Using a unique information rating scheme that draws from 114 measures over five dimensions of information disclosure from 2005 to 2013, we find that firms with higher levels of information disclosure (better information transparency) are related to higher industry-adjusted Tobin's Q. We also find that the levels of information disclosure and product market competition interact in affecting firm value. This relationship is robust after controlling for a number of firm-specific factors and agency-based measures. Our paper brings two streams of research that aim to explain the variation in firms' value together, and suggests that information disclosure and product market competition complement each other in enhancing a firm's value.

The Effect of Product Market Competition on Corporate Voluntary Disclosure Decisions
The Effect of Product Market Competition on Corporate Voluntary Disclosure Decisions

Author: Yong-Chul Shin

Publisher:

Published: 2002

Total Pages: 0

ISBN-13:

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This paper investigates empirically the effect of different types of product market competition on levels of voluntary disclosure of proprietary information in financial markets. Firms, considering a disclosure, trade off attaining financial market valuation-related benefits vs. protecting long-term product market advantage. Based on economic theory, I propose that there are two types of strategic interaction settings relevant to disclosure: Capacity competition drives firms to disclose more; price competition drives them to disclose less. When firms are competing on capacities, firms disclose more information to lower the cost of capital needed for capital investments. In contrast, when firms are competing on prices, they disclose less information because proprietary costs are high and the benefit from any decreased cost of capital is low due to less acute need for additional capital. By estimating the signs of the slope of reaction curves to identify the type of competition facing firms in oligopoly markets, I find that the type of product market competition affects the level of voluntary disclosure over and above what pervious literature has documented as the firm's external financing needs. That is, firms engaged in capacity competition disclose relatively more information than firms engaged in price competition. Further analysis after including as benchmarks firms with no strategic interaction, shows that capacity competition firms disclose more information than no-strategic-interaction firms but that price competition firms do not disclose less information than no-strategic-interaction firms.

The Effect of Product Market Competition on Mandatory Disclosure Strategy
The Effect of Product Market Competition on Mandatory Disclosure Strategy

Author: Hanyong Chung

Publisher:

Published: 2020

Total Pages: 0

ISBN-13:

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This study examines how product market competition affects firms' mandatory disclosure strategies. Using the information in the SEC comment letters, I observe that firms in a highly competitive market are more likely to file unaudited mandatory disclosures with deficiency. I also find that firms facing higher competition from potential entrants tend to bundle positive (negative) mandatory items with the negative (positive) management earnings forecasts. These findings support my conjecture that firms exercise discretion in the mandatory disclosure through less transparent ways, due to a proprietary cost resulting from market competition. Additional analyses demonstrate a positive economic consequence of such disclosure strategy, and the relationship between market competition and mandatory disclosure strategies is stronger for industry followers than for industry leaders.

Sustainability of the Theories Developed by Mathematical Finance and Mathematical Economics with Applications
Sustainability of the Theories Developed by Mathematical Finance and Mathematical Economics with Applications

Author: Wing-Keung Wong

Publisher: MDPI

Published: 2020-12-15

Total Pages: 382

ISBN-13: 3039365312

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The topics studied in this Special Issue include a wide range of areas in finance, economics, tourism, management, marketing, and education. The topics in finance include stock market, volatility and excess returns, REIT, warrant and options, herding behavior and trading strategy, supply finance, and corporate finance. The topics in economics including economic growth, income poverty, and political economics.

The Evolution of Corporate Disclosure
The Evolution of Corporate Disclosure

Author: Alessandro Ghio

Publisher: Springer Nature

Published: 2020-04-02

Total Pages: 183

ISBN-13: 3030422992

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This book provides a critical analysis of the evolution of corporate disclosure. Building upon prior academic literature, it assesses the most important changes in mandatory corporate disclosure, the growing relevance of social and environmental disclosure, and revolutionary new forms of corporate communication, in particular social media. It also includes empirical analyses that shed further light on the impact of voluntary communication, i.e. social and environmental reporting and corporate social media communication, on managerial and investment decisions. Lastly, it discusses new directions for accounting and corporate governance research on the theoretical and empirical challenges of corporate disclosure. Offering a wealth of relevant and timely advice, the book will help regulators design policies that allow businesses to overcome current and emerging economic, social, and technological challenges.

The Impacts of Product Market Competition on the Quantity and Quality of Voluntary Disclosures
The Impacts of Product Market Competition on the Quantity and Quality of Voluntary Disclosures

Author: Li, Xi

Publisher:

Published: 2016

Total Pages: 0

ISBN-13:

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This study examines how firms' voluntary disclosure decisions are influenced by product market competition. Using separate measures to capture different dimensions of competition, I show that competition from potential entrants increases disclosure quantity while competition from existing rivals decreases disclosure quantity. I also find that competition enhances disclosure quality mainly through reducing the optimism in profit forecasts and reducing the pessimism in investment forecasts. Moreover, I find that the above association is less pronounced for industry leaders, consistent with industry leaders facing less competitive pressures than industry followers.

The Oxford Handbook of Corporate Governance
The Oxford Handbook of Corporate Governance

Author: Mike Wright

Publisher: Oxford University Press, USA

Published: 2013-03-28

Total Pages: 830

ISBN-13: 0199642001

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Corporate governance remains a central area of concern to business and society, and this Handbook constitutes the definitive source of academic research on this topic, synthesizing international studies from economics, strategy, international business, organizational behavior, entrepreneurship, business ethics, accounting, finance, and law.