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The effect of the Enhanced (Continuous) Disclosure Regime on the Informational Efficiency of the Australian Equity Market

Project Member(s): Taylor, S.

Funding or Partner Organisation: Australian Research Council (ARC Large Grant)

Start year: 1998

Summary: Australia's Continuous Dislcosure regime (CD), introduced in September 1994, is unique. It obliges listed companies to make timely disclosures of all value-relevant information, with few carfe-outs. In November, 1996 CASAC reported there was no strong evidence that CD had any significant impact on the efficiency of the Australian share market. However, this conclusion comes from a SIRCA study undertaken too soon after CD's introduction to be reliable. Our project will be definitive. It will (1) develop significantly better tests of investros' responses to regulated disclosures and (2) incorporate five years' data (sufficient to reach valid conclusions). This project has focussed on changes in the disclosure practices and accounting properties of Australian firms, as well as properties of analysts forecasts, and the influence of changes in corporate regulations.

Publications:

Balatbat, M, Taylor, SL & Walter, TS 2004, 'Corporate governance, insider ownership and operating performance of Australian initial public offerings', Accounting and Finance, vol. 44, no. 3, pp. 299-328.
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Coulton, JJ & Taylor, SL 2004, 'Directors duties and corporate governance: have we gone too far?', Australian Accounting Review, vol. 14, no. 1, pp. 17-24.
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Lee, PJ, Stokes, D, Taylor, SL & Walter, TS 2003, 'The association between audit quality, accounting disclosures and firm-specific risk: evidence from initial public offerings', Journal of Accounting and Public Policy, vol. 22, no. 5, pp. 377-400.
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Coulton, JJ & Taylor, SL 2002, 'Options awards for Australian CEOs: The who, what and why', Australian Accounting Review, vol. 12, no. 1, pp. 25-35.
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Brown, PR, Taylor, SL & Walter, TS 1999, 'The impact of statutory sanctions on the level and information content of voluntary corporate disclosure', Abacus: a journal of accounting, finance and business studies, vol. 35, no. 2, pp. 138-162.
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