Industry concentration and corporate disclosure policy

Ashiq Ali, Sandy Klasa, Eric Yeung

Research output: Contribution to journalArticlepeer-review

194 Scopus citations


This study examines the association between U.S. Census industry concentration measures and the informativeness of corporate disclosure policy. We find that in more concentrated industries firms[U+05F3] management earnings forecasts are less frequent and have shorter horizons, their disclosure ratings by analysts are lower, and they have more opaque information environments, as measured by the properties of analysts[U+05F3] earnings forecasts. Also, when these firms raise funds they prefer private placements, which have minimal SEC-mandated disclosure requirements, over seasoned equity offerings. Overall, our findings suggest that firms in more concentrated industries disclose less and avoid certain financing decisions that have non-trivial disclosure implications, presumably due to proprietary costs of disclosure. Firms in more concentrated industries tend to disclose less.These firms have more opaque information environments. The above findings are more pronounced in less financially leveraged industries.Proprietary costs of disclosure presumably lead to the study[U+05F3]s findings.

Original languageEnglish (US)
Pages (from-to)240-264
Number of pages25
JournalJournal of Accounting and Economics
Issue number2-3
StatePublished - Nov 1 2014


  • Analyst disclosure ratings
  • Analyst forecast properties
  • Corporate disclosures
  • Industry concentration
  • L1
  • M40
  • M41
  • Management forecasts
  • Private placements versus seasoned equity offerings

ASJC Scopus subject areas

  • Accounting
  • Finance
  • Economics and Econometrics


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