Affiliation:
1. Massachusetts Institute of Technology
Abstract
ABSTRACT
We study how short-term changes in institutional owner attention affect managers' disclosure choices. Holding institutional ownership constant and controlling for industry-quarter effects, we find that managers respond to attention by increasing the number of forecasts and 8-K filings. Rather than alter the decision of whether to forecast or to provide more informative disclosures, attention causes minor disclosure adjustments. This variation in disclosure is primarily driven by passive investors. Although attention explains significant variation in the quantity of disclosure, we find little change in abnormal volume and volatility, the bid-ask spread, or depth. Overall, our evidence suggests that management responds to temporary institutional investor attention by making disclosures that have little effect on information quality or liquidity.
JEL Classifications: G23; G32; G34; G12; G14.
Publisher
American Accounting Association
Subject
Economics and Econometrics,Finance,Accounting
Reference56 articles.
1. Ali,
A.,
Klasa
S.,
and
YeungE.
2014.
Industry concentration and corporate disclosure policy.
Journal of Accounting and Economics58 (
2/3):
240–
264.
https://doi.org/10.1016/j.jacceco.2014.08.004
2. Anantharaman,
D.,
and
ZhangY.
2011.
Cover me: Managers' responses to changes in analyst coverage in the post-Regulation FD period.
The Accounting Review86 (
6):
1851–
1885.
https://doi.org/10.2308/accr-10126
3. Appel,
I. R.,
Gormley
T. A.,
and
KeimD. B.
2016.
Passive investors, not passive owners.
Journal of Financial Economics121 (
1):
111–
141.
https://doi.org/10.1016/j.jfineco.2016.03.003
4. Basu,
R.,
Pierce
S.,
and
StephanA.
2019.
The effect of investor inattention on voluntary disclosure.
Working paper, The George Washington University.
5. Ben-David,
I.,
Franzoni
F.,
Moussawi
R.,,
and
SedunovJ.
2019.
The granular nature of large institutional investors.
CEPR Discussion Paper No. 13427. Available at: https://cepr.org/active/publications/discussion_papers/dp.php?dpno=13427
Cited by
80 articles.
订阅此论文施引文献
订阅此论文施引文献，注册后可以免费订阅5篇论文的施引文献，订阅后可以查看论文全部施引文献