Paper Title
ECONOMICS OF INFORMATION DISCLOSURE REGULATION IN CAPITAL MARKET: A NIGERIAN VIEWPOINT

Abstract
Abstract - Adequate supply of relevant information is essential to reduce the risk associated with uncertainty in equity investment decisions. Therefore, regulatory authorities periodically prescribe information items for disclosure in corporate annual reports incrementally. This paper assessed the effects of different disclosure levels on share price dispersion (SPD), a measure of extent of risk in equity investment decision. Using average mandatory information disclosure (MID) as benchmark, the firms were categorised into three levels of disclosure namely: above, equal to and below MID.Thereafter, analysis of variance technique was applied on data collected on a sample of seventy-two dividend-paying companies on the Nigerian Stock Exchange between 2000 and 2011. Disclosure level below MID had effect on SPD while disclosure level above MID had no effect on SPD indicating information redundancy and wastage of resources. Therefore, there is the need for evaluation of incremental contribution of information proposed for mandatory disclosure Keywords - Share Price Dispersion, Average Mandatory Disclosure level, Above Average Mandatory Disclosure level, Below Average Mandatory Disclosure level