Russell J. Lundholm

TL;DR: This paper examined cross-sectional variation in analysts' published evaluations of firms' disclosure practices and provided evidence that the analysts' ratings are increasing in firm size and in firm performance as measured by earnings and return variables, decreasing in the correlation between earnings and returns, and higher for firms issuing securities in the current or future period.

TL;DR: In this article, the authors examine the relation between the disclosure practices of firms, the number of analysts following each firm, and properties of the analysts' earnings forecasts and find that firms with more informative disclosure policies have a larger analyst following, more accurate analyst earnings forecasts, less dispersion among individual analyst forecasts and less volatility in forecast revisions.

TL;DR: In this paper, the authors examine corporate disclosure activity around seasoned equity offerings and its relationship to stock prices and find that firms that maintain a consistent level of disclosure experience price increases prior to the offering, and only minor price declines at the offering announcement relative to the control firms, suggesting that disclosure may have reduced the information asymmetry inherent in the offering.

TL;DR: In this paper, the authors study how firm disclosure activity affects the relation between current annual stock returns, contemporaneous annual earnings and future earnings and find that firms with relatively more informative disclosures bring the future forward so that current returns reflect more future earnings news.

TL;DR: This paper investigated the informational properties of "pro-forma" earnings and found that higher levels of exclusions lead to predictably lower future cash flows and that investors do not fully appreciate the lower cash flow implications at the time of the earnings announcement.