Disclosure frequency and earnings management

• 成果类型: Article
• 署名作者: Jo, Hoje; Kim, Yongtae
• 署名单位: Santa Clara University
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2006.03.007
• 发表日期: 2007
• 页码: 561-590
• 关键词: SEASONED EQUITY OFFERINGS; earnings management; disclosure frequency; post-issue performance

摘要

We examine the relation between disclosure frequency and earnings management, and the impact of this relation on post-issue performance, for a sample of seasoned equity offerings (SEOs). We contend that firms with extensive disclosure are less likely to face information problems, leading to less earnings management and better post-issue performance. Our results confirm that disclosure frequency is inversely related to earnings management and positively associated with post-issue performance. We also find that transparency-reducing disclosure is concentrated in firms that substantially, but temporarily, increase disclosure prior to the offering. Such firms exhibit more earnings management and poorer post-SEO stock performance, on average. (c) 2006 Elsevier B.V. All rights reserved.