The informativeness of risk factor disclosures is a subject of debate. We predict and find that risk factor disclosures in 10-K filings reduce the chance of a large negative movement in stock prices—stock price crash risk. This effect is further identified through a difference-in-differences...

This paper examines how the Securities and Exchange Commission's (SEC) enforcement actions and whom they target deter future financial misconduct. An enforcement action reduces the incidence of misconduct in other firms in the same industry and metropolitan statistical area (MSA) in the future....