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Does corporate investment efficiency affect corporate disclosure practices?

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Does corporate investment efficiency affect corporate disclosure practices? / Elberry, Noha; Hussainey, Khaled.

In: Journal of Applied Accounting Research, Vol. 21, No. 2, 06.2020, p. 309-327.

Research output: Contribution to journalArticlepeer-review

Harvard

Elberry, N & Hussainey, K 2020, 'Does corporate investment efficiency affect corporate disclosure practices?', Journal of Applied Accounting Research, vol. 21, no. 2, pp. 309-327. https://doi.org/10.1108/JAAR-03-2019-0045

APA

Vancouver

Author

Elberry, Noha ; Hussainey, Khaled. / Does corporate investment efficiency affect corporate disclosure practices?. In: Journal of Applied Accounting Research. 2020 ; Vol. 21, No. 2. pp. 309-327.

Bibtex

@article{d9cc2dc217604000a15ca01fccdc02d1,
title = "Does corporate investment efficiency affect corporate disclosure practices?",
abstract = "Purpose: We examine the impact of corporate investment efficiency on corporate voluntary disclosure for a sample of UK non-financial companies.Design: We use a sample of FTSE All Share firms for the period 2007-2014. Disclosure scores are collected from Corporate Financial Information Environment (CFIE). We follow Biddle et al. (2009) and Chen et al. (2011) in measuring corporate investment efficiency.Findings: We find that high level of performance-related disclosure is associated with high level of corporate investment efficiency, while high level of good news information is associated with low level of corporate investment efficiency. We also find evidence on a bidirectional relation between disclosure and corporate investment efficiency. Research implications: Our findings would be of importance to stakeholders and corporations. Stakeholders{\textquoteright} investment decisions could be facilitated by understanding the disclosures provided by their firms and how these firms{\textquoteright} performance is presented. Corporations become aware of the language, which must be used to signal their performance. Originality: Our paper adds to disclosure studies by introducing a new variable, corporate investment efficiency, as a determinant of corporate disclosure practice.",
keywords = "Corporate investment efficiency, voluntary disclosure, disclosure tone, United Kingdom",
author = "Noha Elberry and Khaled Hussainey",
note = "NO EMBARGO ",
year = "2020",
month = jun,
doi = "10.1108/JAAR-03-2019-0045",
language = "English",
volume = "21",
pages = "309--327",
journal = "Journal of Applied Accounting Research",
issn = "0967-5426",
publisher = "Emerald Group Publishing Ltd.",
number = "2",

}

RIS

TY - JOUR

T1 - Does corporate investment efficiency affect corporate disclosure practices?

AU - Elberry, Noha

AU - Hussainey, Khaled

N1 - NO EMBARGO

PY - 2020/6

Y1 - 2020/6

N2 - Purpose: We examine the impact of corporate investment efficiency on corporate voluntary disclosure for a sample of UK non-financial companies.Design: We use a sample of FTSE All Share firms for the period 2007-2014. Disclosure scores are collected from Corporate Financial Information Environment (CFIE). We follow Biddle et al. (2009) and Chen et al. (2011) in measuring corporate investment efficiency.Findings: We find that high level of performance-related disclosure is associated with high level of corporate investment efficiency, while high level of good news information is associated with low level of corporate investment efficiency. We also find evidence on a bidirectional relation between disclosure and corporate investment efficiency. Research implications: Our findings would be of importance to stakeholders and corporations. Stakeholders’ investment decisions could be facilitated by understanding the disclosures provided by their firms and how these firms’ performance is presented. Corporations become aware of the language, which must be used to signal their performance. Originality: Our paper adds to disclosure studies by introducing a new variable, corporate investment efficiency, as a determinant of corporate disclosure practice.

AB - Purpose: We examine the impact of corporate investment efficiency on corporate voluntary disclosure for a sample of UK non-financial companies.Design: We use a sample of FTSE All Share firms for the period 2007-2014. Disclosure scores are collected from Corporate Financial Information Environment (CFIE). We follow Biddle et al. (2009) and Chen et al. (2011) in measuring corporate investment efficiency.Findings: We find that high level of performance-related disclosure is associated with high level of corporate investment efficiency, while high level of good news information is associated with low level of corporate investment efficiency. We also find evidence on a bidirectional relation between disclosure and corporate investment efficiency. Research implications: Our findings would be of importance to stakeholders and corporations. Stakeholders’ investment decisions could be facilitated by understanding the disclosures provided by their firms and how these firms’ performance is presented. Corporations become aware of the language, which must be used to signal their performance. Originality: Our paper adds to disclosure studies by introducing a new variable, corporate investment efficiency, as a determinant of corporate disclosure practice.

KW - Corporate investment efficiency

KW - voluntary disclosure

KW - disclosure tone

KW - United Kingdom

U2 - 10.1108/JAAR-03-2019-0045

DO - 10.1108/JAAR-03-2019-0045

M3 - Article

VL - 21

SP - 309

EP - 327

JO - Journal of Applied Accounting Research

JF - Journal of Applied Accounting Research

SN - 0967-5426

IS - 2

ER -

ID: 19674286