자율공시의 정보효과

The Information Content of Voluntary Disclosure

Although there has been no in-depth research or discussion on voluntary disclosure, it is being expanded for reducing companies’ burden of timely disclosure and for providing diverse types of information to investors. Because there is no regulation enforcing voluntary disclosure, there can be problems in reliability and discretion excluding unfavorable information. If reliability is not secured in voluntary disclosure, we cannot exclude the possibility that the expansion of the voluntary disclosure system may weaken managerial transparency of firms. Thus, the present study examined what differences there are in the information effect of voluntary disclosure between companies that had made disclosure sincerely and those that had made it insincerely in the past. According to the results of the empirical analysis, those with poor quality of disclosure had a larger variation of abnormal trading. This suggests that when an unreliable company makes a voluntary disclosure, the unreliable disclosure confuses the market and increases the variation of trading volume. Thus, the market’s autonomous response to voluntary disclosure can bring confusion to the market, and damage to investors. Therefore, rather than indiscreet expansion of voluntary disclosure, it is considered necessary to develop regulations on disclosure and the assessment of the reliability of companies’ disclosure based on various studies.