Voluntary Corporate Disclosures by UK Companies
نویسنده
چکیده
This paper models the arrival rate of voluntary news announcements of the FTSE AllShare firms. We test to see if the earnings environment affects the volume of news announcements that firms release to the stock market. We also examine whether the other factors such as the size of a firm and the external coverage a firm receives affects the pattern of news disclosures. Our results show that firms in a negative earnings environment have a positive and significant disclosure rate while the same is not noticed for firms in a positive earnings environment. We find this relationship to hold only in the post-FSA period as opposed to the pre-FSA period which provides evidence that the changes from the UK’s Financial Services Authority taking over responsibility for the United Kingdom Listing Authority has had an impact on disclosure practices of FTSE firms. Our results also show a positive relationship between the size of a firm and disclosure rate but we also find that firms that are receive the least coverage release more information.
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