We model limited attention as incomplete usage of publicly available information. Informed players decide whether or not to disclose to observers who sometimes neglect either disclosed signals or the implications of non-disclosure. In equilibrium observers are unrealistically optimistic,...

We examine the relationship between analyst research and corporate earnings announcements to explore the relative importance of information discovery versus interpretation of previously released information. Using equity market reaction to capture information content, we find that information...

This study investigates the effect of a security regulation that occurs concomitantly with International Financial Reporting Standards (IFRS) adoption on the information content of earnings announcements in Italy. To identify the effect of this regulation, we use a treatment (i.e., Italy) and a...

In addition to disclosure regulation, the Securities and Exchange Commission (SEC) periodically intervenes in the market making process to facilitate fair, orderly, and efficient capital markets. For example, responding to calls for increased market maker competition on the Nasdaq in the early...

This paper reviews the literature on the real effects of financial reporting and disclosure on corporate innovation, highlighting both the possible channels of influence and the potential challenges that researchers face when attributing causal effects. We discuss the concept of innovation,...

The purpose of this paper is to investigate the level of intellectual capital (IC) disclosure of the largest Czech and Hungarian listed firms. We apply content analysis of the annual statements and measure IC disclosure by a score. We hypothesize that a significant positive relationship exists...

Outsourcing has become a significant factor in the U.S. economy over the past two decades. Annual report disclosures made by a firm related to outsourcing are voluntary disclosures. Understanding the determinants and firm performance implications of initial outsourcing annual report disclosures...

In the wake of Enron-era scandals, practitioners warn that earnings guidance invites earnings management as executives scramble to achieve previously announced targets. Concurrent academic studies show that company executives manage earnings to achieve benchmark targets. This study attempts to...

We examine the disclosure choice faced by managers when a previously-issued earnings forecast becomes inaccurate. In some cases, managers explicitly update the forecast with a revised earnings estimate, while in other cases, managers withdraw the original forecast without providing an update. We...