The Informational Effects of Tightening Oil and Gas Disclosure Rules

Gaizka Ormazabal, Marc Badia, Miguel Duro and Bjørn Jørgensen

No 12776, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: We exploit two regulatory shocks to examine the informational effects of tightening pre-existing mandatory disclosure rules. Canadian Rule NI 51-101 and the US “Modernization of Oil and Gas Reporting†introduced a quasi-identical tightening of the rules governing oil and gas reserve disclosures in Canada and the US at different times. Both in Canada and the US, we document significant changes in firms’ reporting outcomes when the new regulation is introduced. We also find that the reserve disclosures filed under the new regulations are more closely associated with stock price changes and with decreases in bid-ask spreads. Our findings are robust to controlling for other confounding factors such as time trends, other information disclosed simultaneously, financial reporting incentives, mispricing and monitoring efforts.

Keywords: Disclosure rules; Disclosure of oil; Gas reserves (search for similar items in EconPapers)
JEL-codes: M41 (search for similar items in EconPapers)
Date: 2018-03
New Economics Papers: this item is included in nep-ene and nep-reg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://cepr.org/publications/DP12776 (application/pdf)

Related works:
Journal Article: The Informational Effects of Tightening Oil and Gas Disclosure Rules (2020)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:12776

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP12776

Access Statistics for this paper

More papers in CEPR Discussion Papers from Centre for Economic Policy Research 33 Great Sutton Street, London EC1V 0DX, UK.
Bibliographic data for series maintained by CEPR ().