In this paper, we consider the price effects of risk disclosure. We develop a model in which investors are uncertain … risk disclosure decreases the firm's cost of capital by reducing this premium and that the market response to risk … disclosure is small when the expected level of risk is high. Moreover, we find that firms acquire and disclose more risk …

In this paper, I examine the impact of ambiguity (Knightian uncertainty), alongside that of risk, on firms’ voluntary … disclosure decisions. I confirm the well-known result that an increase in risk— uncertainty over outcomes—is associated with an … which risk impacts managers’ disclosure decisions have been extensively studied in the accounting literature, no extant …

We examine the voluntary disclosure theory’s prediction of heterogeneous stock market reaction to M&A conference calls …