Study regarding voluntary disclosure of ongoing or concluded enforcement reviews published (09/2018)


In September 2018, Accounting in Europe published a paper by Prof. Hitz and Dr. Schnack concerned with "Firm Disclosures about Enforcement Reviews". The study, in a descriptive and exploratory investigation of the annual reports of German firms subject to enforcement scrutiny from 2006 to 2016, finds that managers voluntarily disclose information about enforcement reviews even when the reviews are still ongoing. Content analyses reveal that these disclosures are potentially associated with strategic considerations. For instance, the study provides weak evidence that market reactions to error announcements are mitigated by pre-emptive voluntary disclosure about the ongoing reviews.


Source: Hitz, Jörg-Markus/Schnack, Henning (2018): Firm Disclosures about Enforcement Reviews, in: Accounting in Europe.
DOI: 10.1080/17449480.2018.1519320