We investigate the role of segment disclosure, as a corporate governance mechanism, in enhancing investment efficiency, and whether and how corporate governance mechanisms ameliorate or exacerbate under-investment and over-investment problems. Using a large US sample for the period 2001-2006, we...

This study is aimed at developing and validating an index designed to measure the level of social disclosure of external social programmes implemented by firms listed on the Brazilian stock market. Based on Ramanathan (1976), Haydel (1989) and Hammond and Miles (2004), the index of social...

This paper examines how earnings performance relates to firms' narrative R&D disclosure decisions. The unique nature of R&D investments and financial statements' limited ability to communicate the value of such investments highlight the role of narrative disclosure as a supplement to the...

This study examines whether market-wide disclosure reduces the market cost of capital. Using a sample of management forecasts issued between 1994 and 2010, we find that an increase in disclosure at the aggregate level results in a lower market cost of capital. This result is robust to...

This paper provides evidence on the net stock price effects associated with managers following a disclosure strategy of guiding earnings down to a level where they can report a positive earnings surprise. Prior literature documents a stock price premium when firms meet or beat analysts'...

Drawing on a large sample of European firms, we examine whether variant compliance levels with mandated disclosures under IAS 36 Impairment of Assets and IAS 38 Intangible Assets are value relevant and affect analysts' forecasts. Our results indicate a mean (median) compliance level of about 84%...

We inform the policy debate on whether management earnings guidance fosters managerial myopia by examining whether firms providing earnings guidance exhibit less firm innovation. At the core of the debate is whether guidance impedes long-term value creation, and evidence on the association...

Using the staggered adoption of universal demand (UD) laws in the United States, we study the effect of shareholder litigation risk on corporate disclosure. We find that disclosure significantly increases after UD laws make it more difficult to file derivative lawsuits. Specifically, firms issue...

We investigate whether nonprofessional investors' responses to a company's reported earnings differ when management earnings guidance is presented as a goal or an expectation. We present 64 MBA students and 262 Mturk participants with management earnings guidance, manipulating between-subjects...

Prior research on strategic corporate disclosure in good times versus bad often produces divergent inferences when focusing on selected channels and different disclosure windows. In this paper, we instead study a comprehensive set of corporate disclosure channels over the annual disclosure...