A Comparative Study on the Measure of Disclosure Level
Asian Tax Journal Vol. 11 No. 3 (2010), pp. 9-35
Abstract
The existing literature use the frequency of the timely disclosure and voluntary timely disclosure as a disclosure level. However, since the insiders only have an access to all the information,evaluation of disclosure level using the above frequency may lead to the incorrect evaluation. Using the inquiry disclosure we can measure the disclosure level better than before. When the firm confirms the existence of the inquired disclosure, this implies that this information could be disclosed via the voluntary timely disclosure. This study measures the disclosure level in diverse ways using voluntary disclosure, fair disclosure, and inquiry disclosure. Empirical evidence shows evidence indicating that the voluntary disclosure does not improve the disclosure level, however, the use of voluntary disclosure and inquired disclosure improve the limitation of voluntary disclosure in measuring the disclosure level. The outcome of this study suggests the use of inquired disclosure could be developed and used in a various context.
Keywords
- Voluntary Disclosure
- Fair Disclosure
- Inquired Disclosure
- Disclosure Level
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