Are required SEC proxy disclosures about the board’s role in risk oversight substantive?

نویسندگان

چکیده

The U.S. Securities and Exchange Commission (SEC) requires companies it regulates to include disclosures about the board’s role in risk oversight annual proxy statement shareholders. SEC does not mandate specific content or actions that boards should perform as part of their responsibilities, leaving nature activities extent those discretion reporting entity. This study examines whether these contain substantive information reflective effectiveness organization’s oversight. We find organizations disclosing more (but simply information) board practices are associated with firms independently assessed having strongest management governance processes. These findings suggest use provided by SEC’s disclosure rule provide potentially value-relevant for stakeholders entity’s processes activities.

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ژورنال

عنوان ژورنال: Journal of Accounting and Public Policy

سال: 2021

ISSN: ['1873-2070', '0278-4254']

DOI: https://doi.org/10.1016/j.jaccpubpol.2020.106816