A local-relation approach to the analysis of disclosure determinants

Castellano Nicola, Corsi Katia, Del Gobbo Roberto

Extant studies about determinants of disclosure often result in contradictory outcomes. Despite the different methodologies employed, scholars generally tend to investigate the existence of relations in “global” terms by considering the whole range of observed values pertaining to the dependent and independent variables involved in the descriptive model. According to this global approach, a hypothesis about the existence of the relation can be accepted or rejected entirely. The paper intends to contribute to literature by proposing an integrative methodology based on the analysis of local relations, which are significant within a limited interval of the dependent variable. The approach may be meaningful when hypotheses at a general level are not supported. The set of local relations also provides a more comprehensive description of the characteristics associated with a specific level of disclosure.

Key-Words: Bilancio e comunicazione finanziaria,  determinants of corporate disclosure; Local regression; LOWESS smooth curve