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Corporate financial disclosure measurement in the empirical accounting literature: a review article.

Hassan, Omaima A.G.; Marston, Claire

Authors

Omaima A.G. Hassan

Claire Marston



Abstract

This paper develops a framework for corporate financial disclosure measurement to identify and evaluate measures of financial disclosure employed in prior empirical accounting studies. It identifies two approaches: (i) a disclosure-based approach that investigates actual disclosure, operationalizes the concept of disclosure in terms of its main dimensions such as the quantity and quality of disclosure, and develops methods to measure them such as the disclosure index and textual analysis, and (ii) a non-disclosure-based approach that uses the values of some observable variables to proxy for disclosure such as market-based disclosure measures. The study also discusses the extent to which the reliability and validity of these different measures of disclosure are tested. The purposes of this review are: (i) to help future researchers identify exemplars and select or develop their own suitable disclosure measures, and (ii) to identify measurement issues relating to corporate financial disclosure and provide avenues for future research.

Journal Article Type Article
Publication Date Jun 30, 2019
Journal International Journal of Accounting
Print ISSN 0020-7063
Electronic ISSN 2213-3933
Publisher Elsevier
Peer Reviewed Peer Reviewed
Volume 54
Issue 2
Article Number 1950006
Institution Citation HASSAN, O.A.G. and MARSTON, C. 2019. Corporate financial disclosure measurement in the empirical accounting literature: a review article. International journal of accounting [online], 54(2), article ID 1950006. Available from : https://doi.org/10.1142/S1094406019500069
DOI https://doi.org/10.1142/s1094406019500069
Keywords Accounting information; Financial disclosure; Financial reporting; Measurement; Reliability; Validity
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