Managers’ segment disclosure choices under IFRS 8: EU evidence

• Main Authors: Aboud, A. (Author), Roberts, C. (Author)
• Format: Article
• Language: English
• Published: Elsevier Ltd 2018
• Subjects: Agency cost; IFRS 8; Management approach; Proprietary cost; Segment disclosure quality
• Online Access: View Fulltext in Publisher
• ISBN: 01559982 (ISSN)
• DOI: 10.1016/j.accfor.2018.09.004

We examine the impact of proprietary and agency cost motives on segment disclosure quality and quantity and how the adoption of the principle IFRS 8 affects this impact. By using hand-collected data, our results show that proprietary and agency costs play a relevant role in determining the quality and quantity of segment disclosure. We find that proprietary costs are a particularly relevant reason for providing lower segment disclosure quality post-IFRS 8. Our results also suggest that firms’ segment disclosure choice is dependent on disclosure dimension. These results contribute to the ongoing debate regarding IFRS 8 and have valuable implications for accounting regulators. © 2018 Elsevier Ltd