What is the economic value of the Extractive Industries Transparency Initiative (EITI) information disclosure?
Muhammad Nurul Houqe and
Tony van Zijl
Journal of Contemporary Accounting and Economics, 2018, vol. 14, issue 2, 216-233
We use the United States Extractive Industries Transparency Initiative (EITI) unilateral release of information on non-tax payments by extractive companies to the US Government as an illustration of the economic value of EITI information. We test for market reaction to the initial disclosure of this information in terms of change in trading volume and abnormal returns, and the value relevance of the continuing disclosure of the information over 2013–2016 period. The results show that the initial release resulted in a significant trading volume reaction and produced positive cumulative abnormal return in the period immediately surrounding the release date. Regression analyses of the cross-sectional variation in abnormal returns show that the reaction is associated with oil and gas firms with high working capital and lower asset turnover. Furthermore, we find that the USEITI information released over the period to 2016 is (at least) weakly value relevant.
Keywords: Extractive Industries Transparency Initiative; Market reaction; Event study; Value relevance (search for similar items in EconPapers)
JEL-codes: M40 M41 M48 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:jocaae:v:14:y:2018:i:2:p:216-233
Access Statistics for this article
Journal of Contemporary Accounting and Economics is currently edited by Agnes C.S. Cheng, P. Clarkson, F.A. Gul, Zoltan Matolcsy, Dan Simunic and Ben Srinidhi
More articles in Journal of Contemporary Accounting and Economics from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().