Contrary to conventional wisdom that sharing negative information hurts, many sellers voluntarily disclose weaknesses of their products in markets where information asymmetry is high. This paper provides an explanation on this type of seller’s honesty by developing a framework where sellers with low-quality products can benefit from a disclosure of negative information. We consider a lemon-mark...

OBJECTIVE To examine the association between accreditation scores and the disclosure of accreditation reports. DESIGN A cross sectional study. SETTING Hospitals participating in an accreditation programme in Japan. PARTICIPANTS 547 of the 817 hospitals accredited by the Japan Council for Quality Health Care (JCQHC) by January 2003. MAIN OUTCOME MEASURES Data on participation in public d...

We examine whether regulation intended to improve disclosure can itself lead to higher disclosure quality in the absence of a change in preparer incentives. We exploit a setting involving a sequence of two similar regulatory changes, which have one key difference – while both regulatory changes mandate improvements to disclosure (specifically, on pension asset allocation), only one removes prep...

the purpose of this study is to investigate the relation between identity styles and commitment with quality of friendship among the students in third grade of high school. 400 participants from nineteen educational districts were chosen randomly. three quesnonnaires were used: identity style inventory, the quality of friendship, the reciprocity of friendship . the results indicated that inform...

Information disclosure in annual reports is a mandatory requirement for publicly traded companies in China. The quality of information disclosure will reduce information asymmetry and therefore support market efficiency. Currently, the evaluation of the information disclosure quality in Chinese reports is conducted manually. It remains an untapped field for NLP and text mining community. The go...

This study examines how firms’ voluntary disclosure decisions are influenced by the 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 t...

Purpose – This study examines whether the type of ultimate controllers (i.e., private vs. state) affects corporate disclosure quality and whether the relationship between the type of ultimate controllers and corporate disclosure quality is moderated by the separation of ownership and control. Design/methodology/approach – This study employs the data of 405 Chinese listed firms in 2005. We revie...

The information quality of mandatory financial reporting depends on two factors: (1) Are standards appropriate to produce financial statements that provide investors with sufficient information? (2) Is compliance to standards enforced by appropriate institutions? This paper addresses the question if firms should be able to create hidden reserves as an example for the effect of standards on info...