Saturday, March 21, 2015

The Economic Consequences of Disclosure Quality under SFAS No. 131

SYNOPSIS

We investigate the economic consequences of SFAS No. 131 by evaluating whether improved segment-disclosure quality is associated with the reduction of cost of debt (as measured by bond yield spread). Based on firms' compliance with the disclosure guidance by SFAS No. 131, we construct a score that measures segment-reporting quality. The results indicate that ...more

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