e-journal

Evidence of voluntary accounting disclosures in the Athens Stock Market

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Purpose – The purpose of this paper is to explore the motives for providing voluntary accounting
disclosures and investigate the financial differences between voluntary and non-voluntary disclosers.
The paper also examines the association between the provision of voluntary disclosures and earnings
management.
Design/methodology/approach – The study utilises logistic regressions to test the hypothetical
relations set up in the study. The categorisation of firms into those that report the minimum required
by law and those that provide voluntary accounting information is based on the examination of firms’
financial statements. Company categorisation is based on the construction of an index similar to the
disclosure index formulated by the Center for International Financial Analysis and Research. Each
sample firm obtains a score, with a higher score reflecting a more significant level of disclosure.
Findings – The findings show that voluntary disclosers exhibit higher profitability and growth and
appear to be good news bearers. They also display a change in their management and a higher share
trading volume. The results provide evidence that the provision of voluntary accounting disclosures is
negatively associated with earnings management.
Research limitations/implications – The study indicates that sound financial indicators and good
news and prospects are likely to motivate firms to provide voluntary disclosures in order to attract
investors’ attention and communicate their managerial superiority or potential. Less information
asymmetry and earnings management would lead to the disclosure of informative accounting
information and would subsequently assist investors in making efficient decisions.
Originality/value – The contribution of the study lies in the fact that Greece is a particular case
because it is a “rules-based” code-law country that involves high levels of standardisation and that has
adopted IFRSs that are “principles-based” and involve flexibility in financial reporting and judgment.
Also, financial reporting in Greece is less restrictive in terms of disclosure requirements. The findings
of the study are useful for financial analysts and investors, as they enable them to understand the
financial attributes and motives of firms that provide voluntary disclosures as well as their earnings
management inclination.

Keywords Greece, Stock exchanges, Stock markets, Disclosure, Voluntary accounting disclosures,
Earnings management, Athens Stock Market, Big-4 auditing, Change in management

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Informasi Detail

Judul Seri

Review of Accounting and Finance

No. Panggil

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Penerbit

: Emerald Group., 2012

Deskripsi Fisik

Review of Accounting and Finance Vol. 11 No. 1, 2012 pp. 73-92

Bahasa

English

ISBN/ISSN

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Klasifikasi

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Tipe Isi

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Tipe Media

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Tipe Pembawa

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Edisi

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Subjek

AKUNTANSI

Info Detail Spesifik

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Pernyataan Tanggungjawab

Asmawati/Syahrial

Versi lain/terkait

Lampiran Berkas

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