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Disclosure and determinants studies: An extension using the divisive clustering method (DIV)

Author

Listed:
  • Yuan Ding

    (CEIBS - Europe International Business School)

  • Hervé Stolowy

    (GREGH - Groupement de Recherche et d'Etudes en Gestion à HEC - HEC Paris - Ecole des Hautes Etudes Commerciales - CNRS - Centre National de la Recherche Scientifique)

  • Linghui Fu
  • Huiwen Wang

Abstract

Disclosure and determinants studies have been extensively carried out in past accounting research. However, they have one major methodological drawback: the disclosure analysis in these studies is often limited to the determination of the disclosure index, i.e. the sum of disclosed items, weighted or unweighted. The disclosure profile (which reflects the structure of published information) is generally not used in the research design. The objective of this paper is to introduce a divisive (descendant) clustering method which splits the sample into homogeneous sub-groups corresponding to disclosure patterns (or profiles), for clearer determination of the financial characteristics of each group. This methodology is illustrated by a study of disclosure on provisions by large French firms. The results show that the disclosure pattern is related to provision intensity, size, leverage, profit and market expectation, but not to return and industry. This new research method is a valuable complement to expand on disclosure and determinants studies, moving from disclosure levels to disclosure patterns.

Suggested Citation

  • Yuan Ding & Hervé Stolowy & Linghui Fu & Huiwen Wang, 2004. "Disclosure and determinants studies: An extension using the divisive clustering method (DIV)," Working Papers hal-00587233, HAL.
    • Handle: RePEc:hal:wpaper:hal-00587233
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    More about this item

    Keywords

    Disclosure; Provisions; France; Size; Clustering method; Publication; Déterminants; Taille; Méthode de classification;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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