User Sophistication and the Specificity of Disclosure as Reflected in Disclosure of a Firm's Status as a Potentially Responsible Party

43 Pages Posted: 25 Apr 1999

See all articles by Kirsten Ely

Kirsten Ely

Independent

Elizabeth Stanny

Sonoma State University - School of Business and Economics; Sonoma State University

Date Written: April 1999

Abstract

This paper examines the relation between disclosure of descriptive, value-relevant information (a firm's status as a Potentially Responsible Party (PRP)) and user sophistication (high analyst following). We find that firms with lower analyst following are less likely to make specific disclosures of PRP status and more likely to be less specific in their annual reports than their 10-Ks. Also, we find that the less specific disclosures are valued less negatively. Finally, firms with low analyst following that disclose less specifically in their annual report than their 10-K have a less negative valuation of their PRP status than those whose disclosures are consistent.

JEL Classification: M41, M45, G11, G29

Suggested Citation

Ely, Kirsten and Stanny, Elizabeth, User Sophistication and the Specificity of Disclosure as Reflected in Disclosure of a Firm's Status as a Potentially Responsible Party (April 1999). Available at SSRN: https://ssrn.com/abstract=161508 or http://dx.doi.org/10.2139/ssrn.161508

Kirsten Ely

Independent

Elizabeth Stanny (Contact Author)

Sonoma State University - School of Business and Economics ( email )

1801 East Cotati Avenue
Rohnert Park, CA 94928
United States
707-664-4287 (Phone)
707-664-4009 (Fax)

HOME PAGE: http://estanny.com

Sonoma State University ( email )

1801 East Cotati Ave.
School of Business and Economics
Rohnert Park, CA 94928
United States
707-664-4287 (Phone)
707-664-4009 (Fax)

HOME PAGE: http://www.sonoma.edu/users/s/stanny

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
208
Abstract Views
1,878
rank
182,181
PlumX Metrics