The decision to disclose information concerning a firm's environmental liabilities is modeled as a sequential game involving the firm, a capital market and outside stakeholders who can impose proprietary (political) costs on the firm. A partial disclosure equilibrium is derived in which firms...

This study examines the impact of voluntary environmental disclosure on the cost of equity capital and firm value, and on the public perception about a firm's environmental performance. A salient feature of the study is that our analysis controls for corporate environmental performance using...

The objective of this study is to investigate the role, if any, that management discussion and analysis (MD&A) plays in a firm's disclosure package. First, we present evidence regarding the usefulness of MD&A. Our evidence is uniformly supportive of the view that MD&A is a source of new and...

The Securities and Exchange Commission (SEC) of the USA requires that Canadian firms cross-listed in stock exchanges reconcile their earnings using Canadian GAAP to what earnings would have been had US GAAP been used. Prior literature has examined the capital market implications of such...

In the presence of litigation facing suppliers, the supply-chain relationship is at risk. Suppliers with principal customers (dependent suppliers) have a higher concentration of sales to customers, and they are more at risk relative to suppliers without principal customers (non-dependent...