Managing continuous disclosure: Australian evidence

Abstract

Purpose

This study aims to explore how Australian Securities Exchange (ASX) listed companies manage their statutory continuous disclosure (CD) obligations.

Design/methodology/approach

Employing aspects of Gibbins et al.'s corporate financial disclosure framework, this study conducts semi-structured interviews with 22 experienced senior managers from diverse companies to examine in depth the key antecedents, structures and issues influencing the CD process.

Findings

The findings indicate that companies' preference to deal with CD as a commercial or legal issue, managers' practical CD experience, who assumes responsibility for CD, owners' and market expectations, third parties, environmental uncertainties and media are important antecedents in the CD process. The importance of these is contingent on company characteristics. Large companies primarily use structured processes and responsive communication networks whereas small to medium companies rely on informal processes and interpersonal communications. Despite following best practice guidelines, companies face multiple issues in managing CD.

Research limitations/implications

Prior disclosure beliefs and personal biases may have a disproportionate impact on CD behaviour. Future research can examine more closely how these behavioural characteristics influence companies' disclosure policies.

Practical implications

This study offers insights for managers interested in managing CD more effectively. The findings suggest the importance of experience, behaving in a proactive manner and educating employees on companies' CD obligations. It offers insights for regulators on aspects of guidance that could be improved.

Originality/value

The study draws on Gibbins et al.'s theoretical framework to furnish a more complete and refined understanding of the CD process.

Citation

Mayorga, D. (2013), "Managing continuous disclosure: Australian evidence", Accounting, Auditing & Accountability Journal, Vol. 26 No. 7, pp. 1135-1169. https://doi.org/10.1108/AAAJ-03-2013-1259