Please use this identifier to cite or link to this item:
Title: Voluntary disclosure with evolving news
Authors: Aghamolla, Cyrus
An, Byeong-Je
Keywords: Business::Accounting::Disclosure
Issue Date: 2021
Source: Aghamolla, C. & An, B. (2021). Voluntary disclosure with evolving news. Journal of Financial Economics, 140(1), 21-53.
Project: 001263-00001
Journal: Journal of Financial Economics
Abstract: We study a dynamic voluntary disclosure setting where the manager's information and the firm's value evolve over time. The manager is not limited in her disclosure opportunities, but disclosure is costly. The results show that the manager discloses even if this leads to a price decrease in the current period. The manager absorbs this price drop in order to increase her option value of withholding disclosure in the future. That is, by disclosing today, the manager can improve her continuation value. The results provide a number of novel empirical predictions regarding asset prices and disclosure patterns over time. These include, among others, that disclosures are negatively correlated in time, and stock return skewness is negatively correlated with lagged returns for firms with low uncertainty over their future profitability, in more competitive industries, and in industries with less informative public news.
ISSN: 0304-405X
DOI: 10.1016/j.jfineco.2020.11.004
Schools: Nanyang Business School 
Rights: © 2020 Elsevier B.V. All rights reserved. This paper was published in Journal of Financial Economics and is made available with permission of Elsevier B.V.
Fulltext Permission: open
Fulltext Availability: With Fulltext
Appears in Collections:NBS Journal Articles

Files in This Item:
File Description SizeFormat 
Manuscript 2020-0334 Aghamolla An.pdf1.69 MBAdobe PDFThumbnail

Citations 20

Updated on Sep 23, 2023

Web of ScienceTM
Citations 20

Updated on Sep 15, 2023

Page view(s)

Updated on Sep 25, 2023


Updated on Sep 25, 2023

Google ScholarTM




Items in DR-NTU are protected by copyright, with all rights reserved, unless otherwise indicated.