This study investigates peer effects in corporate disclosure and accounting behaviour. Peer effect is defined as the average behaviour of a group influencing an individual group members’ behaviour. The primary contribution of this study is to document that peer firm disclosure behaviour is an important determinant of corporate disclosure decisions. Prior research in accounting literature primarily focuses on firm-specific determinants but ignores potential externalities generated by peer firms. One important implication is that the externalities might interact with other firm-specific factors, and therefore change our inferences regarding firm-specific behaviour obtained from prior research.