Informing the Market: The Effect of Modern Information Technologies on Information Production

• 成果类型: Article
• 署名作者: Gao, Meng; Huang, Jiekun
• 署名单位: University of Illinois System; University of Illinois Urbana-Champaign
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhz100
• 发表日期: 2020
• 页码: 1367
• 关键词: CORPORATE DISCLOSURE; FORECAST REVISIONS; FAIR DISCLOSURE; REG FD; STOCK; investors; performance; managerial; analysts; cost

摘要

Modern information technologies have fundamentally changed how information is disseminated in financial markets. Using the staggered implementation of the EDGAR system from 1993 to 1996 as a shock to information dissemination technologies, we find evidence that internet dissemination of corporate disclosures increases information production by corporate outsiders. Trades by individual investors, especially those with access to the internet, become more informative about future stock returns following the EDGAR implementation. The amount and accuracy of information produced by sellside analysts increase after the implementation. These results suggest that greater and broader information dissemination facilitated by modern information technologies improves information production.