This paper examines whether mandated market risk disclosures under the SEC Financial Reporting Release No. 48 (FRR 48) provide useful information to investors regarding firms' risk exposures. To provide evidence on this issue we investigate whether the SEC disclosures reduce investor uncertainty...

This paper uses a trading volume analysis to examine the extent to which SEC-mandated disclosures make firms' market risk exposures more transparent to investors. We hypothesize that if the SEC's quantitative market risk disclosures reduce investor disagreements about firms' risk exposures,...