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Article dans une revue The Review of Accounting and Finance Année : 2008

On the Efficiency of Risks Disclosures: New Evidence from French-Listed Firms

Résumé

The purpose of this paper is to study the effect of operational, market
and accounting risks disclosures on investors' disagreements about
French firms' value. The paper provides evidence on risks reporting
efficiency in reducing investors' disagreements about the implication
for firm's value of changes in underlying risks factors. Investors'
disagreement is measured by trading volume. We work on the whole
sample of French-listed firms and focus on those disclosing about
their risks exposure. Using balanced panel data, we apply regression
analyses for each risk factor changes on trading volume during 120
days before and after annual report release. The results show that
only market risk reporting reduces disagreements about changes in
underlying market rates or prices. This result is consistent with the
theoretical efficiency of risks disclosures in improving value reporting.
However, our findings indicate insignificant and weak effect
of operational and accounting risks disclosures on investors' disagreements
about changes in underlying risks factors. This evidence
mitigates concerns about the usefulness of COB's (2002) operational
and accounting risks disclosures requirements. Additional analysis
reveals that risk disclosures reported in quantitative terms are more
efficient than those reported in qualitative terms.
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Dates et versions

halshs-00170628, version 1 (10-09-2007)

Identifiants

  • HAL Id : halshs-00170628 , version 1

Citer

Mohamed Khaled Ghozzi. On the Efficiency of Risks Disclosures: New Evidence from French-Listed Firms. The Review of Accounting and Finance, 2008, Accepté sous réserve de modifications. ⟨halshs-00170628⟩
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