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Strategic Financial Disclosure: Evidence from Labor Negotiations

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  • JOHN WATERHOUSE
  • MICHAEL GIBBINS
  • ALAN J. RICHARDSON

Abstract

. Evidence of strategic behavior in public financial disclosure is provided by analyzing 673 disclosures that were made before, during, and after four Canadian labor strikes. Financial disclosures included quantitative and qualitative information about the sampled companies that appeared in print media during the periods of interest. Strategic behavior involved the naming of one actor by another in the disclosures. The analyses showed that disclosure frequency was much higher during and immediately preceding the strikes than in other periods. Network†analytic techniques were employed to examine the linkages among seven groups of actors that were named in the disclosures. The disclosure networks increased in density during the strikes but became less centralized. Our analysis supports the view that strategic interactions in disclosures are multilateral and dynamic. Thus, any attempt to model financial disclosure during labor negotiations as a bilateral single†period game would appear to be simplistic. Disclosure management in this setting seems to occur within a complex economic and social setting.

Suggested Citation

  • John Waterhouse & Michael Gibbins & Alan J. Richardson, 1993. "Strategic Financial Disclosure: Evidence from Labor Negotiations," Contemporary Accounting Research, John Wiley & Sons, vol. 9(2), pages 526-550, March.
    • Handle: RePEc:wly:coacre:v:9:y:1993:i:2:p:526-550
    DOI: 10.1111/j.1911-3846.1993.tb00896.x
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    References listed on IDEAS

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    Cited by:

    1. Van den Abbeele, Alexandra & Roodhooft, Filip & Warlop, Luk, 2009. "The effect of cost information on buyer-supplier negotiations in different power settings," Accounting, Organizations and Society, Elsevier, vol. 34(2), pages 245-266, February.
    2. Jean-Louis Paré & Frédéric Demerens, 2011. "Détecter les manipulations financières en France : Le cas d'une PME cotée sur Alternext," Post-Print hal-00650559, HAL.
    3. Viktoriia Gryn, 2021. "Strategic Correction of Enterprise Reporting Policy," Oblik i finansi, Institute of Accounting and Finance, issue 1, pages 5-11, March.
    4. R. Lynn Hannan & Frederick W. Rankin & Kristy L. Towry, 2006. "The Effect of Information Systems on Honesty in Managerial Reporting: A Behavioral Perspective," Contemporary Accounting Research, John Wiley & Sons, vol. 23(4), pages 885-918, December.
    5. Michael Gibbins & Susan A. McCracken & Steve E. Salterio, 2007. "The Chief Financial Officer's Perspective on Auditor†Client Negotiations," Contemporary Accounting Research, John Wiley & Sons, vol. 24(2), pages 387-422, June.
    6. Nabil Elias, 1993. "Discussion of “Strategic Financial Disclosure: Evidence from Labor Negotiationsâ€," Contemporary Accounting Research, John Wiley & Sons, vol. 9(2), pages 551-558, March.

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