An Empirical Analysis of the Quality of Corporate Financial Disclosure

Abstract

IN A free enterprise system, variations in corporate disclosure practices are likely to result since corporations are managed by groups which have varying managerial philosophies and wide discretion in connection with disclosing information to the investing public. The quality of corporate disclosure influences to a great extent the quality of investment decisions made by investors. This study attempts to identify some of the characteristics of corporations in the United States which are associated with, and the probable implications of, the quality of corporate disclosure.