The Effect of Exogenous Information on Voluntary Disclosure and Market Quality
| Autor: | Ilan Guttman, Ilan Kremer, Sivan Frenkel |
|---|---|
| Rok vydání: | 2018 |
| Předmět: |
040101 forestry
Economics and Econometrics Public information 050208 finance ComputingMilieux_THECOMPUTINGPROFESSION Third party business.industry Strategy and Management media_common.quotation_subject 05 social sciences Accounting 04 agricultural and veterinary sciences Market liquidity Voluntary disclosure Crowds Market quality 0502 economics and business 0401 agriculture forestry and fisheries ComputingMilieux_COMPUTERSANDSOCIETY Price efficiency Quality (business) business Finance media_common |
| Zdroj: | SSRN Electronic Journal. |
| ISSN: | 1556-5068 0304-405X |
| DOI: | 10.2139/ssrn.3211173 |
| Popis: | We analyze a model in which information may be voluntarily disclosed by a firm and/or by a third party, e.g., financial analysts. Due to its strategic nature, corporate voluntary disclosure is qualitatively different from third-party disclosure. Greater analyst coverage crowds out (crowds in) corporate voluntary disclosure when analysts mostly discover information that is available (unavailable) to the firm. Nevertheless, greater analyst coverage always improves the overall quality of public information. We base this claim on two market quality measures: price efficiency, which is statistical in nature, and liquidity, which is derived in a trading stage that follows the disclosure stage. |
| Databáze: | OpenAIRE |
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