Prior literature suggests that voluntary disclosures of forward-looking information tend to lead to capital market benefits, but these disclosures may also result in negative capital market consequences if subsequent performance falls below expectations. We therefore hypothesize that convex...

Theory suggests that stock price guides managers in corporate decisions as managers learn from price. We reason that cross-ownership of industry peers lowers information processing costs and increases industry specialization, helping investors better produce private information and transmit it...

In this paper, we examine the effect of managers' pay duration on firms' voluntary disclosures. Pay duration refers to the average period that it takes for managers' annual compensation to vest. We hypothesize and find that pay duration can incentivize managers to provide more bad news earnings...