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Can managers influence the liquidity of their firms' shares? We use plausibly exogenous variation in the supply of public information to show that firms actively shape their information environments by voluntarily disclosing more information than regulations mandate and that such efforts improve...
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time-series variation in these mandates, we investigate the effects of mandated auditor reporting on bank risk. We find … evidence that auditor reporting reduces bank riskiness, as measured by counterparty risk, nonperforming loans, and credit … spreads. We also observe a decline in risk-weighted assets, which suggests that mandated auditor reporting enhances the …
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We show that the 2004 SEC regulation requiring more frequent disclosures from active mutual funds unintendedly increased the profitability of trading by another set of informed investors, namely insiders. Cross-sectional analyses suggest that this increase in insiders' profits is due to mutual...
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Can managers influence the liquidity of their firms' shares? We use plausibly exogenous variation in the supply of public information to show that firms seek to actively shape their information environments by voluntarily disclosing more information than is mandated by market regulations and...
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