Discontinued SEC Required Disclosures: the Value of Repairs and Maintenance Expenditures using a Variance Decomposition Approach

Authors

Bruce K. Behn, The University of Tennessee
Richard Riley, West Virginia University
Giorgio Gotti, University of Massachusetts BostonFollow
Richard C. Brooks, West Virginia University

Document Type

Occasional Paper

Publication Date

2-2008

Abstract

On December 13, 1994, the Securities and Exchange Commission (SEC) eliminated certain schedules that included repairs and maintenance (R&M) disclosures previously required in annual reports and registration statements filed with the SEC. The purpose of this research is to determine if market participants utilized R&M information when making investment decisions. Resulting from a variance decomposition approach, the findings indicate that market participants did use R&M disclosures in their investment decisions. Thus, as a possible policy implication of this research, the SEC may want to reconsider the decision to eliminate the required R&M expenditure disclosures.

Comments

Working Paper #1044

Recommended Citation

Behn, Bruce K.; Riley, Richard; Gotti, Giorgio; and Brooks, Richard C., "Discontinued SEC Required Disclosures: the Value of Repairs and Maintenance Expenditures using a Variance Decomposition Approach" (2008). Financial Services Forum Publications. 9.
https://scholarworks.umb.edu/financialforum_pubs/9