Journal ArticleDOI
Shareholder Litigation and Corporate Disclosures
Citations
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Information Asymmetry, Corporate Disclosure and the Capital Markets: A Review of the Empirical Disclosure Literature
TL;DR: 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.
Journal ArticleDOI
Information asymmetry, corporate disclosure, and the capital markets: A review of the empirical disclosure literature $
Paul M. Healy,Krishna G. Palepu +1 more
TL;DR: In this article, the authors provide a framework for analyzing managers' reporting and disclosure decisions in a capital markets setting, and identify key research questions and key researchquestions, concluding that current research has generated a number of useful insights.
Journal ArticleDOI
The economic implications of corporate financial reporting
TL;DR: This paper found that the majority of managers would avoid initiating a positive NPV project if it meant falling short of the current quarter's consensus earnings, and more than three-fourths of the surveyed executives would give up economic value in exchange for smooth earnings.
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The market pricing of accruals quality
TL;DR: In this article, the authors investigate whether investors price accruals quality, our proxy for the information risk associated with earnings, and find that poorer AQ is associated with larger costs of debt and equity.
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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.
References
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Journal ArticleDOI
Good News and Bad News: Representation Theorems and Applications
TL;DR: In this article, a notion of "favorableness" of news is introduced, characterized, and applied to four simple models: the arrival of good news about a firm's prospects always causes its share price to rise, more favorable evidence about an agent's effort leads the principal to pay a larger bonus, buyers expect that any product information withheld by a salesman is unfavorable to his product, and bidders figure that low bids by their competitors signal a low value for the object being sold.
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Cross- sectional determinants of analyst ratings of corporate disclosures
Mark H. Lang,Russell J. Lundholm +1 more
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.
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Why firms voluntarily disclose bad news
TL;DR: In this paper, the authors examined the earnings-related disclosures made by a random sample of 93 NASDAQ firms during 1981-90 and found that good news disclosures tend to be point or range estimates of annual earnings-per-share (EPS), while bad news disclosures tended to be qualitative statements about the current quarter's earnings; the (unconditional) stock price response to bad
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The Informational Role of Warranties and Private Disclosure about Product Quality
TL;DR: The Informational Role of Warranties and Private Disclosure about Product Quality Author(s): Sanford J. Grossman Source: Journal of Law and Economics, Vol. 24, No. 3, Consumer Protection Regulation: A Conference Sponsored by the Center for the Study of the Economy and the State (Dec., 1981), pp. 461-483 as mentioned in this paper
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Corporate forecasts of earnings per share and stock-price behavior - empirical tests
TL;DR: In this paper, the authors examined the common stock price behavior which accompanied the voluntary disclosure of 336 forecasts of annual earnings per share during the years 1963-67 and found that these forecast disclosures were accompanied by significant price adjustments, from which the inference may be drawn that either the data presented in a management forecast, the act of voluntary disclosure, or both, convey information to investors.
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Theory of the firm: Managerial behavior, agency costs and ownership structure
Information asymmetry, corporate disclosure, and the capital markets: A review of the empirical disclosure literature $
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