The purpose of this study is to investigate how bondholders' limited upside potential impacts the timeliness of the bond market reaction to bad news earnings surprises. We find that bond prices anticipate the majority of the information in bad news earnings surprises, but none of the information...

We investigate a pervasive voluntary disclosure practice -- managers including balance sheets with quarterly earnings announcements. Consistent with expectations, we find that managers voluntarily disclose balance sheets when current earnings are relatively less informative, or when future...