Showing 1 - 10 of 2,825
This paper examines the implications of the option value of equity for firms' disclosures. Merton (1974) shows that the equity of levered firms is equivalent to a call option whose value increases in the expected variance of future cash flows. I use this equivalence to calculate firms' vega,...
Persistent link: https://www.econbiz.de/10013092101
This paper studies the propensity of firms to commit to disclose information that is subsequently biased, in the presence of other firms also issuing potentially biased information. An important aspect of such an analysis is the fact that firms can choose whether to disclose or withhold...
Persistent link: https://www.econbiz.de/10013018857
firm and its dividend policy. The agency theory and the pecking order theory show that the problem of cash over …
Persistent link: https://www.econbiz.de/10012845981
new IAS/IFRS reporting standards based on relevance and transparency, and would also run counter to the improvements in … evidence suggests that under the new IAS/IFRS reporting philosophy, proprietary costs may have lost relevance due to the … IFRS 8 offers new opportunities to observe how governance and proprietary costs affect the new “management approach” for …
Persistent link: https://www.econbiz.de/10013046715
About two-thirds of S&P500 firms disclose their analyst following on their corporate websites. Half of these firms disclose their analyst following in an unbiased fashion, while the rest manage this disclosure by selectively omitting analysts with pessimistic views (selective disclosers)....
Persistent link: https://www.econbiz.de/10014349944
I examine the effect of the disclosure of pending lawsuits in 10-K/Q filings on the contractual terms of newly issued bonds. I find that firms' decision to disclose pending lawsuits and the amount of disclosed information (i.e., the level of disclosure) have opposite effects. Specifically, firms...
Persistent link: https://www.econbiz.de/10012938417
Agency conflicts between investors are particularly severe in the presence of high family and block-holder ownership. By focusing on a setting characterised by high ownership concentration, we study the role of independent directors in promoting transparency through increased disclosure. In our...
Persistent link: https://www.econbiz.de/10013045164
Until October 2004 corporate insiders in Germany were required to report trades in the shares of their firm "without delay". In practice substantial reporting delays were common. We show that the delays are systematically related to the characteristics of the firm. Delays are longer in...
Persistent link: https://www.econbiz.de/10003761182
In this paper, we propose a model including the trading stage (acquisition of shares and blockholder disclosure) and the governance stage of activism. We analyze the blockholder's timing of disclosure, allowing for a strategic behavior. In some cases, the blockholder voluntarily renounces to use...
Persistent link: https://www.econbiz.de/10012965976
This paper investigates the causal effects of voluntary information disclosures on a bank's expected default probability, enterprise risk, and value. I measure disclosure via a self-constructed index for the largest 80 U.S. bank holding companies for the period 1998-2011. I provide evidence that...
Persistent link: https://www.econbiz.de/10013034966