This study investigates management incentive to disclose non-GAAP indicators concerning innovation in high-technology industries and the usefulness of the disclosure. As predicted, we find that firms increase disclosures of innovation when current earnings are less informative, or when future...

This study provides an integrated analysis of the interrelations among (1) environmental disclosure, (2) environmental performance, and (3) economic performance. Based on the argument that management's (unobservable) overall strategy affects each of these corporate responsibilities, we...

This article offers a survey of theoretical research on disclosure and the cost of capital. We summarize the current state of the literature and discuss the channels through which information affects the cost of capital. After giving an overview of asset pricing theory, we examine the rationale...

Psychological evidence indicates that it is hard to process multiple stimuli and perform multiple tasks at the same time. This paper tests the investor distraction hypothesis, which holds that the arrival of extraneous news causes trading and market prices to react sluggishly to relevant news...

Surprisingly, prior research finds that the attention paid by active institutional investors to individual stocks has no real effects on disclosure and liquidity decisions by management. In contrast, after categorizing these same active institutional investors as either dedicated or transient,...

We investigate the effects of the introduction of Statement of Financial Accounting Standards No. 131 (SFAS 131) on the market's valuation of foreign earnings. Thomas (1999) documents that investors discount the value of foreign earnings for U.S. multinational companies. He conjectures but does...

In Korea, there is a general tendency for controlling shareholders to transfer the ownership of their companies to the next generation. In this paper, we investigate whether Korean controlling shareholders attempt to influence stock prices when they transfer stock to related parties as gifts....

Firms enjoy a wide degree of discretion in their disclosure of events in the patent granting process, which investors generally view as "good news" announcements. This study examines the timing of patent disclosure in conjunction with earnings announcements in light of managers' incentives to...

We demonstrate analytically and empirically that valuing a firm with foreign operations in the presence of exchange rate uncertainty requires information on the foreign operating cash flows disaggregated by currency and persistence. In particular, given consolidated earnings, investors need...