VOLUNTARY ACCOUNTING DISCLOSURES IN THE AIRLINE INDUSTRY

Bert J. Zarb
Embry-Riddle Aeronautical University
ABSTRACT
This study examines voluntary financial disclosures in the airline industry. Since the
disclosure of mandatory financial information forms the basis of the reporting dialog between
companies and their constituents, it is posited that airline companies would be willing to
voluntarily disclose financial information in their annual reports. This study indicates that a
significant majority of airline companies disclose some form of financial information voluntarily.
This study also shows that cultural constructs together with the size of an airline
company play a significant role in determining whether an airline company will disclose financial
information voluntarily. This study further shows that the greater the airline company size, the
greater the disclosure of voluntary financial information.