Accounting: A Critique of An Academic Article: Voluntary Disclosure and Investment - Assignment Example

Moreover, the author presumed that accurate pricing provides the firm with more and better investment incentives and leads to the creation of efficient investment decisions. The firm can affect its market shares if it strategically discloses or withholds private information. Therefore, the author states that the determinants of investment disclosures depend on the overall benefits that the firm will get. The originality or value of the article stems from its contribution to economic literature by stating the effects and basis of voluntary disclosures.

The author thus strives to examine possible economic benefits that come with voluntary disclosures. Another originality of the article is its emphasis and reference to relevant theories for efficient resource allocation in disclosure settings. The article also adds to the limited studies or research on mandatory financial reporting since there has been limited literature on the economic efficiency of voluntary investment disclosures (Wen, 2013). On the other hand, the research findings have a profound influence on future empirical studies related to accounting.

The model that the study adapts has a positive implication on voluntary disclosures since it enables firms to predict market reactions to such decisions. One of the objectives of this study is to examine the possible determinants, as well as economic efficiency of voluntary disclosures (Wen, 2013) (Wen, 2013). The underlying assumption is that there exists limited literature on the economic benefits or efficiency of voluntary disclosures. Another objective of the paper is to contribute to the field of voluntary disclosure through a detailed analysis of the possible effects or relevance of investment disclosures.

The author presumes that voluntary investment disclosures are economically relevant in any given market. On the other hand, the article strives to examine some of the