This study examines how proprietary costs of mandatory disclosure influence the decision to exclude registration rights in private placements. Registration rights oblige the issuer to register with SEC in a three-to-seven-month period subsequent to private placements, therefore pre-committing...

This study examines whether and how proprietary costs of mandatory disclosure influence a firm's decision to first access the public bond market. First access to the public market implies a pre-commitment to mandatory disclosure. Both the industry-level and firm-level evidence suggest that an...

This study examines whether disclosure frequency induced myopia influences the types of firms that go public and their choice of listing exchanges if they decide to do so. We find that the incentive to stay private in order to avoid disclosure frequency induced myopia creates a downward kink in...

This paper examines whether third-party-generated product information on Twitter, once aggregated at the firm level, is predictive of firm-level sales, and if so, what factors determine the cross-sectional variation in the predictive power. First, the predictive power of Twitter comments...

This study identifies two channels through which generalized trust influences CEO succession: the substitution between generalized and personalized trust in selecting the pool of candidates; and the complementarity between generalized and personalized trust in reducing the time for the process....

This paper examines how one aspect of earnings quality - discretionary accruals - affects subsequent capital investment pattern and efficiency. We find that, conditional on investment opportunities, investment in fixed assets in period t is less sensitive to internal cash flows for firms with...

This paper examines whether proprietary costs influence privately held firms' financing choice between private placements and public offerings. The financing choice determines whether proprietary information revealed to investors is also available to competitors. Using hand-collected information...

A causal relationship between disclosure practices and cost of capital is difficult to establish because cost of capital reflects both disclosure practices (information risk) and fundamentals that are being disclosed (fundamental risk). To separate information risk from fundamental risk, this...