Strategic disclosure, which we define as the reporting of good news and the withholding of bad news, provides an explanation for a well-documented dynamic pattern in returns: The negative relation between return shocks and conditional return volatility. Black (1976) dubbed this relation the...

Underpricing in IPOs is a significant cost of raising capital that theories purport arises from adverse selection at the IPO date. Disclosure is a tool firms can use to ameliorate adverse selection. We show that greater disclosure frequency in the pre-IPO period is associated with lower...