The Effect of Firms' Financial Disclosure Strategies on Their Stock Prices PDF Download

Author: Paul M. Healy
Publisher:
ISBN:
Category :
Languages : en
Pages : 28

View

Book Description

Author: Paul M. Healy
Publisher:
ISBN:
Category : Corporations
Languages : en
Pages : 20

View

Book Description

Author: Paul M. Healy
Publisher:
ISBN:
Category : Corporations
Languages : en
Pages : 20

View

Book Description

Author: Patricia M. Dechow
Publisher:
ISBN:
Category : Corporations
Languages : en
Pages : 31

View

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.

Author: Brett Trueman
Publisher:
ISBN:
Category :
Languages : en
Pages :

View

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.

Author: Chandra Kanodia
Publisher: Now Publishers Inc
ISBN: 1601980620
Category : Business & Economics
Languages : en
Pages : 105

View

Book Description
Kanodia presents a new approach to the study of accounting measurement that argues that how firms' economic transactions, earnings, and capital flows are measured and reported to the capital markets has substantial effects on the firms' real decisions and on the allocation of resources.

Author: Luo Zuo (Ph. D.)
Publisher:
ISBN:
Category :
Languages : en
Pages : 59

View

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.

Author: Kim Hua Tan
Publisher:
ISBN: 9781902546131
Category : Business planning
Languages : en
Pages : 106

View

Book Description

Author: Patrick Roy
Publisher: diplom.de
ISBN: 3832448292
Category : Business & Economics
Languages : en
Pages : 141

View

Book Description
Abstract: In a first step, this ERP derives the theoretical necessity to provide voluntary strategic and non-financial Information. It is argued that companies are an integral part of a common environment and society, acting in a framework of interdependent relationships. A company is more and more seen as a community of interests of different groups, and it can only act in an optimal way if the demands of all groups are taken into account and its behaviour is adjusted accordingly. In this context, interest groups' demands for company Information depend an the possibilities of improvements in decision making or monitoring that arise with its use, which in turn is mainly determined by the potential of Information to reduce uncertainty in the areas of interest. For external decision-makers, uncertainty often arises from sources about which conservative company statements provide little insight. Due to the traditional, finance-oriented concept of disclosure, this is particularly true for strategic and non-financial aspects. Related additional Information that is voluntarily provided can considerably reduce uncertainty, even more so as part of audited statements. Conventional financial reporting and existing disclosure requirements will generally not nearly satisfy those information needs of user groups. Any economic action, though, should only be taken if related benefits are exceeding related costs. This priority of economicalness also holds for companies' production, processing and disclosure of Information. Therefore, it is necessary to consider as detailed as possible potential opportunities and disadvantages for voluntarily disclosing company Information both an and outside capital markets. This is done in a second major part of the present work. First, voluntary disclosure can potentially affect share prices and thereby the market value of the firm, markets not being strong-form efficient. So, by giving company Information, a higher market value can directly be induced, thereby potentially lowering the cost of capital which, for example, improves the company's competitive position in the battle for cheap additional financing. [...]

Author: Indra Abeysekera
Publisher:
ISBN:
Category :
Languages : en
Pages : 40

View

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.