Author: Paul M. Healy
Publisher:
ISBN:
Category : Corporations
Languages : en
Pages : 20
Book Description
The Effect of Firms' Financial Disclosure Strategies on Stock Prices
Author: Paul M. Healy
Publisher:
ISBN:
Category : Corporations
Languages : en
Pages : 20
Book Description
Publisher:
ISBN:
Category : Corporations
Languages : en
Pages : 20
Book Description
The Effect of Firms' Financial Disclosure Strategies on Their Stock Prices
The Effect of Firms' Financial Disclosure Strategies on Stock Prices
Author: Paul M. Healy
Publisher:
ISBN:
Category : Corporations
Languages : en
Pages : 20
Book Description
Publisher:
ISBN:
Category : Corporations
Languages : en
Pages : 20
Book Description
The Impact of Analyst Following on Stock Prices and the Implications for Firms' Disclosure Policies
Author: Brett Trueman
Publisher:
ISBN:
Category :
Languages : en
Pages :
Book Description
This paper shows that there is a positive relation between the number of analysts following a firm and the firm's expected share price. This relation is a direct consequence of market participants' inability to observe the number of informed traders in the market. It is further shown that a firm's manager can have an impact on analyst following by varying the precision of the private information analysts obtain about the firm. In equilibrium, the manager will choose a precision level greater than that which maximizes analyst following, but, in many cases, less than its largest possible value.
Publisher:
ISBN:
Category :
Languages : en
Pages :
Book Description
This paper shows that there is a positive relation between the number of analysts following a firm and the firm's expected share price. This relation is a direct consequence of market participants' inability to observe the number of informed traders in the market. It is further shown that a firm's manager can have an impact on analyst following by varying the precision of the private information analysts obtain about the firm. In equilibrium, the manager will choose a precision level greater than that which maximizes analyst following, but, in many cases, less than its largest possible value.
The Causes and Consequences of Aggressive Financial Reporting Policies
Author: Patricia M. Dechow
Publisher:
ISBN:
Category : Corporations
Languages : en
Pages : 31
Book Description
"The objective of this paper is to investigate the effect of firms' information disclosure strategy on firm value. Existing literature has aruged that a firm's disclosure policy can affect firm value. For example, Healy and Palepu (1993) and Lev (1992) argue that management that build a reputation for reliable and timely financial disclosure will reduce information asymmetry problems. This in turn facilitates the firm's ability to issue new capital. In this paper, instead of examining firms that have built reputations for reliable financial disclosures, we examine the converse set of firms. We investigate firms that adopt aggressive financial reporting policies aimed at delaying or hiding bad news concerning their economic circumstances. We investigate two aspects of these firms' choice of disclosure strategy. First, we investigate why the management of these firms choose this strategy and second, we investigate the costs these firms face after they are discovered to have provided unreliable or untimely financial disclosures."--Page 1.
Publisher:
ISBN:
Category : Corporations
Languages : en
Pages : 31
Book Description
"The objective of this paper is to investigate the effect of firms' information disclosure strategy on firm value. Existing literature has aruged that a firm's disclosure policy can affect firm value. For example, Healy and Palepu (1993) and Lev (1992) argue that management that build a reputation for reliable and timely financial disclosure will reduce information asymmetry problems. This in turn facilitates the firm's ability to issue new capital. In this paper, instead of examining firms that have built reputations for reliable financial disclosures, we examine the converse set of firms. We investigate firms that adopt aggressive financial reporting policies aimed at delaying or hiding bad news concerning their economic circumstances. We investigate two aspects of these firms' choice of disclosure strategy. First, we investigate why the management of these firms choose this strategy and second, we investigate the costs these firms face after they are discovered to have provided unreliable or untimely financial disclosures."--Page 1.
The Informational Feedback Effect of Stock Prices on Corporate Disclosure
Author: Luo Zuo (Ph. D.)
Publisher:
ISBN:
Category :
Languages : en
Pages : 59
Book Description
This paper studies whether managers use investor information they learn from the stock market when making forward-looking disclosures. Using annual management earnings forecasts from 1996 to 2010, I find that the association between forecast revisions and stock price changes over the revision periods is stronger when there is more informed trading. Further, the effect of investor information on the revision-return relation remains after controlling for various sources of managerial and public information, and is more pronounced when the information is more relevant to predicted earnings. In addition, more investor information contained in stock prices leads to a greater improvement in forecast accuracy but a weaker market reaction to the subsequent forecast announcement. My study highlights the two-way information flows between firms and capital markets and has implications for the real effects of financial markets.
Publisher:
ISBN:
Category :
Languages : en
Pages : 59
Book Description
This paper studies whether managers use investor information they learn from the stock market when making forward-looking disclosures. Using annual management earnings forecasts from 1996 to 2010, I find that the association between forecast revisions and stock price changes over the revision periods is stronger when there is more informed trading. Further, the effect of investor information on the revision-return relation remains after controlling for various sources of managerial and public information, and is more pronounced when the information is more relevant to predicted earnings. In addition, more investor information contained in stock prices leads to a greater improvement in forecast accuracy but a weaker market reaction to the subsequent forecast announcement. My study highlights the two-way information flows between firms and capital markets and has implications for the real effects of financial markets.
Winning decisions
Author: Kim Hua Tan
Publisher:
ISBN: 9781902546131
Category : Business planning
Languages : en
Pages : 106
Book Description
Publisher:
ISBN: 9781902546131
Category : Business planning
Languages : en
Pages : 106
Book Description
On Firms' Disclosure Channel Decisions
Author: Cheong-Heon Yi
Publisher:
ISBN:
Category : Business records
Languages : en
Pages : 140
Book Description
Publisher:
ISBN:
Category : Business records
Languages : en
Pages : 140
Book Description
The Relation of Intellectual Capital Disclosure Strategies and Market Value in Two Political Settings
Author: Indra Abeysekera
Publisher:
ISBN:
Category :
Languages : en
Pages : 40
Book Description
Purpose - The purpose of this paper is to investigate whether the political setting (civil war versus temporary truce) in a country has an influence on firms' current narrative, visual, and numerical intellectual capital disclosure being included in the current market value of equity. Design/Methodology/Approach - Using content analysis for data generation, this study identifies narrative, visual, and numerical intellectual capital disclosure in firms' annual reports. Financial data were obtained from firms' annual reports and the stock exchange. Fixed effect panel regression was conducted separately for the civil war period and temporary truce period. Findings - The paper finds that during the period entirely beset by civil war, the current market value of equity includes net book value and current earnings only, and does not include narrative, visual, or numerical intellectual capital disclosure. During the period of temporary truce, the current market value of equity includes net book value, current earnings, and narrative disclosure, but not visual or numerical intellectual capital disclosure. Practical Implications - The findings provide insights into the effectiveness of disclosure strategies in politically unstable environments. Originality/Value - This study analyses the disclosure strategies in a civil war and temporary truce context.
Publisher:
ISBN:
Category :
Languages : en
Pages : 40
Book Description
Purpose - The purpose of this paper is to investigate whether the political setting (civil war versus temporary truce) in a country has an influence on firms' current narrative, visual, and numerical intellectual capital disclosure being included in the current market value of equity. Design/Methodology/Approach - Using content analysis for data generation, this study identifies narrative, visual, and numerical intellectual capital disclosure in firms' annual reports. Financial data were obtained from firms' annual reports and the stock exchange. Fixed effect panel regression was conducted separately for the civil war period and temporary truce period. Findings - The paper finds that during the period entirely beset by civil war, the current market value of equity includes net book value and current earnings only, and does not include narrative, visual, or numerical intellectual capital disclosure. During the period of temporary truce, the current market value of equity includes net book value, current earnings, and narrative disclosure, but not visual or numerical intellectual capital disclosure. Practical Implications - The findings provide insights into the effectiveness of disclosure strategies in politically unstable environments. Originality/Value - This study analyses the disclosure strategies in a civil war and temporary truce context.
The Effect of Stock Price on Discretionary Disclosure
Author: Ewa Sletten
Publisher:
ISBN:
Category :
Languages : en
Pages : 53
Book Description
I examine the impact of exogenous changes in stock prices on voluntary disclosure. Specifically, I investigate whether stock price declines prompt managers to voluntarily disclose firm-value-related information (management forecasts) that was withheld prior to the decline because it was unfavorable but became favorable at a lower stock price. Consistent with my predictions, I find that managers are more likely to release good-news forecasts following larger stock price declines but that there is no association between the likelihood of releasing good-news forecasts and the magnitude of stock price increases. Additional evidence indicates that the good-news forecasts eventually conveyed by withholding firms after negative price shocks would likely have resulted in negative market reactions had they been released before the shocks. More generally, I provide evidence that managers withhold bad news and that exogenous stock price declines can induce its disclosure.
Publisher:
ISBN:
Category :
Languages : en
Pages : 53
Book Description
I examine the impact of exogenous changes in stock prices on voluntary disclosure. Specifically, I investigate whether stock price declines prompt managers to voluntarily disclose firm-value-related information (management forecasts) that was withheld prior to the decline because it was unfavorable but became favorable at a lower stock price. Consistent with my predictions, I find that managers are more likely to release good-news forecasts following larger stock price declines but that there is no association between the likelihood of releasing good-news forecasts and the magnitude of stock price increases. Additional evidence indicates that the good-news forecasts eventually conveyed by withholding firms after negative price shocks would likely have resulted in negative market reactions had they been released before the shocks. More generally, I provide evidence that managers withhold bad news and that exogenous stock price declines can induce its disclosure.