13 • 1

CHAPTER

13

CORPORATE FINANCIAL

DISCLOSURE: A GLOBAL

ASSESSMENT*

Carol A. Frost

Global Capital Markets Access LLC

Kurt P. Ramin

International Accounting Standards Committee Foundation

CONTENTS

13.1 Introduction 2
13.2 Summary of Main Results 3
13.3 Corporate Disclosure, Liquidity,
and the Cost of Capital 4
(a) Disclosure and Capital
Market Quality:
A Regulatory Perspective 4
(b) Environmental Factors that
Influence Disclosure and
Market Liquidity 6
(c) Disclosure and Liquidity:
Empirical Evidence 7
13.4 Overview of Automobile
Company Disclosure Survey 7
13.5 Periodic Financial Reports 8
(a) Types, Frequency, and
Content of Reports 8
(b) Annual Reports 10
(c) Interim Reports 10
(d) Announcements of Annual
General Meetings and Proxy
Statements 13
13.6 Cash Flow Statements and
Segment Disclosures 15

13.7 Special Disclosures for

Nondomestic Financial

Statement Users and

Accounting Principles Used 19

13.8 Disclosure of Forward-Looking

Information 23

13.9 Corporate Governance

Disclosures 26

13.10 Internet Disclosure 35

(a) Overview and Regulatory

Initiatives 35

(b) Extensible Business

Reporting Language 38

(c) Survey of Auto

Companies’ Internet

Disclosures 40

13.11 Summary and Implications for

Financial Statement Users and

Managers 40

SOURCES AND SUGGESTED

REFERENCES 42

*The authors appreciate the generous research support provided by the Tuck School of Business at
Dartmouth College Center for Asia and emerging Economies, and are indebted to Howard L. Blum, III,
for his excellent research assistance. Thanks are also due to Karen Sluzenski (Feldberg Library at Dart-
mouth College) for providing invaluable technical assistance.