Date of Award
2023-05-01
Degree Name
Doctor of Philosophy
Department
Theses & amp; dissertations (College of Business)
Advisor(s)
David Folsom
Abstract
This study examines whether disaggregated revenue disclosures required under ASC 606, Revenue from Contracts with Customers, lead to more informative financial statements and, thereby, affect financial statement users' perceptions regarding the future performance of the firm. I manually examine disclosures from S& amp;P 500 firms and find that 60 percent of my sample firms re-package revenue disaggregation disclosures previously found in non-revenue sections of the 10-K before ASC 606 into the newly required revenue disclosures under ASC 606. I examine the distribution of several characteristics such as clearly labeling, clearly indicating the location of revenue disaggregation or the number of classifications used together, and I find variations in how firms report their revenue disaggregation disclosures. However, I do not observe significant differential market reactions between control and treatment groups and between pre-and post-adoption periods. But I find that compared with control firms, firms I identify as having consequential disclosure changes after ASC 606 (treatment firms) experience lower analyst dispersion and higher forecast accuracy. In summary, these findings suggest that the enhanced disclosure requirements in revenue disaggregation lead to a better information environment for firms having consequential disclosure changes and, in turn, enable financial statement users to revise their perceptions.
Language
en
Provenance
Recieved from ProQuest
Copyright Date
2023-05-01
File Size
p.
File Format
application/pdf
Rights Holder
Yu-Tan Wang
Recommended Citation
Wang, Yu-Tan, "Informativeness Of Disaggregated Revenue Disclosures Required Under Asc 606: Evidence From Financial Statement Users' Changes In Perceptions" (2023). Open Access Theses & Dissertations. 3869.
https://scholarworks.utep.edu/open_etd/3869