The Information Content of Segment Disclosures: Australian Evidence

Michael J. Aitken*, Robert M. Czernkowski, Cameron G. Hooper

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

10 Citations (Scopus)

Abstract

This paper investigates whether the voluntary decomposition of consolidated earnings disclosures into industry segments has information content in the sense that such disclosures better enable investors to predict earnings. The broad rationale underlying the experimental design is that if segment disclosure does enable investors to better predict earnings then residual abnormal returns (after controlling for unexpected earnings) surrounding the earnings announcements of firms providing segment disclosures should on average be significantly lower than a matched’ group of firms that do not provide this type of disclosure. Using a short event window design, our results support this view.

Original languageEnglish
Pages (from-to)65-77
Number of pages13
JournalAbacus
Volume30
Issue number1
DOIs
Publication statusPublished - 1994
Externally publishedYes

Keywords

  • Evidence
  • Reporting
  • Segmented information

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