| Title: |
1 Voluntary Disclosure of Turnover for SME’s |
| Authors: |
Patricia Van De Wiele; Hylke V; Jel-codes M K; We Thank Alfred Wagenhofer; Ann Jorissen; Carl Reyns |
| Contributors: |
The Pennsylvania State University CiteSeerX Archives |
| Source: |
https://www.econ.kuleuven.be/Public/NDBAD40/publications/national/voluntary disclosure of turnover for sme.pdf. |
| Publication Year: |
1997 |
| Collection: |
CiteSeerX |
| Subject Terms: |
Key words; Voluntary disclosure; SME; turnover; entry game |
| Description: |
This paper is the first to analyse the desirability of voluntary disclosure of turnover for Small and Medium sized Enterprises (SME’s) in the European Union. The fourth European directive allows SME’s to publish their financial statements in an abridged format. In contrast to large firms, the disclosure of turnover is left to the discretion of the SME. In this paper we use a simple game theoretic model to study the disclosure behaviour of an incumbent firm faced with potential entry on the one hand and a bandwagon effect of disclosure on the other hand. Our findings suggest that the voluntary disclosure regulation is always in the interest of the incumbent firm. However, it need not be in the general interest. We find conditions under which mandatory disclosure could even be preferred from a welfare economic point of view. |
| Document Type: |
text |
| File Description: |
application/pdf |
| Language: |
English |
| Relation: |
http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.512.698 |
| Availability: |
http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.512.698 |
| Rights: |
Metadata may be used without restrictions as long as the oai identifier remains attached to it. |
| Accession Number: |
edsbas.79A93A14 |
| Database: |
BASE |