Value relevance of production and sales quantity disclosures

Abstract

Until recently (2011), Indian disclosure regulations require that listed manufacturing companies provide annual information on the quantity of production and sales at the product-segment levels. Interestingly, India is the only country in which such a disclosure was mandatory. In other countries, companies report data on sales, and one can infer the cost of production; but the bifurcation of these two numbers into the quantity of sales and production, and per unit selling price and per unit costs is unavailable.