The effect of economic policy uncertainty on investor information asymmetry and management disclosures

• 成果类型: Article
• 署名作者: Nagar, Venky; Schoenfeld, Jordan; Wellman, Laura
• 署名单位: University of Michigan System; University of Michigan; Georgetown University; Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park
• 刊物名称: JOURNAL OF ACCOUNTING & ECONOMICS
• ISSN/ISSBN: 0165-4101
• DOI: 10.1016/j.jacceco.2018.08.011
• 发表日期: 2019
• 关键词: market liquidity; STOCK; RISK; earnings; forecasts; returns; TRANSPARENCY; CONSEQUENCES; guidance; ask

摘要

Investor uncertainty about firm value drives investors' information collection and trading activities, as well as managers' disclosure choices. This study examines an important source of uncertainty that likely cannot be influenced by most managers and investors: uncertainty about government economic policy. We find that this uncertainty is associated with increased bid-ask spreads and decreased stock price reactions to earnings surprises. Managers respond to this uncertainty by increasing their voluntary disclosures, but these disclosures only partly mitigate the bid-ask spread increase. We conclude that government economic policy uncertainty is an important component of firms' information environments and managers' voluntary disclosure decisions.