Individual investors and financial disclosure

• 成果类型: Article
• 署名作者: Lawrence, Alastair
• 署名单位: University of California System; University of California Berkeley
• 刊物名称: JOURNAL OF ACCOUNTING & ECONOMICS
• ISSN/ISSBN: 0165-4101
• DOI: 10.1016/j.jacceco.2013.05.001
• 发表日期: 2013
• 关键词: earnings; INFORMATION; cost; performance; managerial; liquidity; attention; responses; returns; WEALTH

摘要

Using detailed data of individual investors, this study shows that, on average, individuals invest more in firms with clear and concise financial disclosures. The results indicate this relation is less pronounced for high frequency trading and financially-literate individuals. The study also shows that individuals' returns are increasing with clearer and more concise disclosures, implying such disclosures reduce individuals' relative information disadvantage. Together, the findings suggest improved corporate disclosure practices benefit individual investors, in particular buy-and-hold investors. (C) 2013 Elsevier B.V. All rights reserved.