This study develops a measure for a firms’ segment disclosure quality estimated by the degree of compliance for SFAS No.131 and further examines the effect of segment disclosure quality on corporate bond yield spreads and information asymmetry. Empirical results show that segment disclosure quality significantly and negatively relates to corporate bond yield spreads when controlling for variables well known in the literature, especially for the subprime period. The results of this research also find that the negative effects become stronger when a firm has higher information asymmetry. Additionally, when controlling for its segment disclosure quality level, the volatility of segment disclosure quality (discretionary disclosure proxy) significantly and positively relates to a firm’s information asymmetry and its bond yield spreads while the effects are dominated by those of segment disclosure quality level during the subprime period.
Keywords: SFAS No. 131; Segment discretionary disclosure; Information asymmetry; Bond yield spreads
JEL Classifications: M41; D21; G12; G14
학회소식
학회소식
[2010년 제 4차] Segment Disclosure Quality, Information Asymmetry,
작성자 : 관리자
조회수 : 1087
게시일 :
2010-12-09