Stabsseminar med Joos

Institutt for foretaksøkonomi holder stabsseminar i dag, onsdag 28. mai kl 12.15, ved Dr. Peter Joos fra MIT.

28.05.2003 - Aentte W. Petersen

Tema: Litigation Risk and Voluntary Disclosure: The Case of Pre-Earnings Announcement Quiet Periods

Tid: Onsdag 28.mai, kl. 12.15-13.30
Sted: Aud. D

Abstract:
Corporate disclosures reduce information asymmetry in the capital market. Previous research suggests legal liability is one of the forces that encourage disclosure. We study pre-earnings announcement quiet periods to provide insights into (a) the role of legal liability in deterring voluntary disclosure and (b) the relation between disclosure policies and trade around earnings announcements. We find that quiet period firms have characteristics associated with higher litigation risk. We also find a substantial increase in the number of reported quiet periods after implementation of FD requirements. Finally, we find that trading volume is significantly higher before earnings announcement dates and that the market reaction is significantly higher at earnings announcement dates associated with quiet periods.

Paper er tilgjengelig på instituttets nettside.

Kontaktpersoner: Svein-Arne Persson (59547) og Hans K. Hvide (59283).