The Relationships between Mandatory and Voluntary Disclosures : Unobservable Precision Choices by Management

This paper examines the effects of mandatory disclosure information on unobservable precision choices by management of voluntary disclosure. Prior research articles investigate the precision of information disclosed by management, but they do not consider the relationships between mandatory and voluntary disclosure information. In this paper, I focus on the relationships and analyze precision choices under the situation that there are mandatory and voluntary disclosure. I find that mandatory disclosure information influences precision choices of voluntary disclosure.