2026-09-23T02:47:54Z https://www.ideals.illinois.edu/oai-pmh

oai:www.ideals.illinois.edu:2142/34569 2023-07-11 col_2142_16440 col_2142_5131 com_2142_16439 com_2142_9216 com_2142_5130

Jackson, Kevin E. Jackson, Kevin E. Hobson, Jessen L. Shavitt, Sharon Smith, Steven Arikan, Ozlem 2012-09-18T21:26:01Z 2012-09-18T21:26:01Z 2014-09-18T10:00:56Z 2012-08 2012-09-18T21:26:01Z 2012-08 Companies use different formats in their risk disclosures in their annual and quarterly reports, as well as in their prospectuses. Some companies specifically disclose the nature of their risks by identifying the parties or circumstances that comprise the source of risk. Conversely, other companies use more generic language to convey risk. I predict and find that investors perceive risk to be more likely to adversely affect a company when it is disclosed in a more specific way rather than in a less specific way. However, I also predict and find that when investors have some prior knowledge about the risk, this effect is mitigated. Finally, after the risk is realized, I find that investors have lower credibility judgments for managers who use less specific language in their risk disclosures than ones who use more specific language when they are aware of another level of specificity. I also find some evidence that participants infer that managers are signaling the importance or triviality of a risk factor through the choice of disclosure specificity. This study contributes to our understanding of how investors react to different disclosure formats and highlights to the preparers of accounting disclosures the importance of their choice of specificity levels, and also has important implications for regulators. Item withdrawn by Alexis Thompson (athmpsn1@illinois.edu) on 2012-07-09T19:14:38Z Item was in collections: University of Illinois Theses & Dissertations (ID: 1) No. of bitstreams: 2 Arikan_Ozlem.docx: 161235 bytes, checksum: 8e998d010b6e06aecdd2c92a881dc385 (MD5) Arikan_Ozlem.pdf: 383903 bytes, checksum: 99c7d08922e273474db588e21e057771 (MD5) Made available in DSpace on 2012-09-18T21:26:01Z (GMT). No. of bitstreams: 4 Arikan_Ozlem.pdf: 391394 bytes, checksum: 74907ca39244f2802873e3b2e50f9983 (MD5) license.txt: 4062 bytes, checksum: 11c5ac690598082d69a68ed426cc3860 (MD5) Arikan_Ozlem.docx: 169414 bytes, checksum: 676946531ffae558671050229352ee48 (MD5) 1_Arikan_Ozlem.docx: 169414 bytes, checksum: 676946531ffae558671050229352ee48 (MD5) Item marked as restricted to the 'Administrator' Group (id=1) by Seth Robbins (srobbins@illinois.edu) on 2012-09-18T21:27:32Z Item is restricted until 2014-09-18T21:27:16Z Restriction data tranferred 2014-07-01T11:35:51-05:00 Original Data Group with Access Administrator Release Date: 2014-09-18 16:27:16 UTC Reason: Author requested closed access (OA after 2yrs) in Vireo ETD system Limited Restriction Lifted for Item 34843 on 2014-09-18T10:00:56Z. http://hdl.handle.net/2142/34569 en Copyright 2012 Ozlem Arikan Risk disclosure nonprofessional investors judgment and decision making risk judgments credibility judgments narrative disclosures The effect of the specificity of the risk disclosure language on investors' risk and credibility judgments Accountancy 1346 Accountancy 0071 University of Illinois at Urbana-Champaign Dissertation Ph.D. PHD:Accountancy -UIUC 10KS0071PHD