Journal ArticleDOI
Information Asymmetry, Corporate Disclosure and the Capital Markets: A Review of the Empirical Disclosure Literature
TLDR
Corporate disclosure is critical for the functioning of an efficient capital market as mentioned in this paper, and firms provide disclosure through regulated financial reports, including the financial statements, footnotes, management discussion and analysis, and other regulatory filings.Abstract:
Corporate disclosure is critical for the functioning of an efficient capital market. Firms provide disclosure through regulated financial reports, including the financial statements, footnotes, management discussion and analysis, and other regulatory filings. In addition, some firms engage in voluntary communication, such as management forecasts, analysts? presentations and conference calls, press releases, internet sites, and other corporate reports. Finally, there are disclosures about firms by information intermediaries, such as financial analysts, industry experts, and the financial press.read more
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Voluntary Nonfinancial Disclosure and the Cost of Equity Capital: The Initiation of Corporate Social Responsibility Reporting
TL;DR: In this article, the authors examine a potential benefit associated with the initiation of voluntary disclosure of corporate social responsibility (CSR) activities: a reduction in firms' cost of equity capital.
Journal ArticleDOI
Revisiting the Relation Between Environmental Performance and Environmental Disclosure: An Empirical Analysis
TL;DR: In this article, the relationship between corporate environmental performance and environmental disclosure was investigated by testing economics-based theories of voluntary disclosure using a more rigorous research design, and they found a positive association between environmental performance with the extent of discretionary environmental disclosures.
Journal ArticleDOI
Annual Report Readability, Current Earnings, and Earnings Persistence
TL;DR: This article examined the relationship between annual report readability and firm performance and earnings persistence and found that firms with lower earnings are harder to read (i.e., they have higher Fog and are longer) and positive earnings of firms with annual reports that are easier to read are more persistent.
Journal ArticleDOI
The Association between Corporate Boards, Audit Committees, and Management Earnings Forecasts: An Empirical Analysis
Irene Karamanou,Nikos Vafeas +1 more
TL;DR: In this article, the authors study how corporate boards and audit committees are associated with voluntary financial disclosure practices, proxied here by management earnings forecasts, and find that in firms with more effective board and audit committee structures, managers are more likely to make or update an earnings forecast, and their forecast is less likely to be precise, it is more accurate, and it elicits a more favorable market response.
Posted Content
Do Managers Withhold Bad News
TL;DR: In this article, the authors examine whether managers delay disclosure of bad news relative to good news and find that the negative stock price reaction to bad news disclosures is greater than the magnitude of the positive stock price response to positive news disclosures.
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Journal ArticleDOI
Theory of the firm: Managerial behavior, agency costs and ownership structure
TL;DR: In this article, the authors draw on recent progress in the theory of property rights, agency, and finance to develop a theory of ownership structure for the firm, which casts new light on and has implications for a variety of issues in the professional and popular literature.
Journal ArticleDOI
The Market for “Lemons”: Quality Uncertainty and the Market Mechanism
TL;DR: In this paper, the authors present a struggling attempt to give structure to the statement: "Business in under-developed countries is difficult"; in particular, a structure is given for determining the economic costs of dishonesty.
Journal ArticleDOI
Corporate financing and investment decisions when firms have information that investors do not have
TL;DR: In this paper, a firm that must issue common stock to raise cash to undertake a valuable investment opportunity is considered, and an equilibrium model of the issue-invest decision is developed under these assumptions.
Journal ArticleDOI
A Simple Model of Capital Market Equilibrium with Incomplete Information
TL;DR: The model financial economics encompasses finance, micro-investment theory and much of the economics of uncertainty as mentioned in this paper, and it has had a direct and significant influence on practice, as is evident from its influence on other branches of economics including public finance, industrial organization and monetary theory.
Book
Positive Accounting Theory
TL;DR: In this article, the authors review the theory and methodology underlying the economics-based empirical literature in accounting and discuss the role of theory in empirical work and the extent to which the theories are consistent with those studies' evidence.