Discussion of Financial reporting opacity and informed trading by international institutional investors

• 成果类型: Article
• 署名作者: Bushee, Brian J.
• 署名单位: University of Pennsylvania
• 刊物名称: JOURNAL OF ACCOUNTING & ECONOMICS
• ISSN/ISSBN: 0165-4101
• DOI: 10.1016/j.jacceco.2012.09.001
• 发表日期: 2012
• 关键词: private information; Corporate transparency; disclosure practices; ANALYST COVERAGE; stock-prices; us markets; earnings; announcement; OWNERSHIP; liquidity

摘要

Maffett (this issue) finds that the opacity of a firm's information environment affects the degree of informed trade by institutional investors. In this discussion, I address the key research design choices involved in studies of opacity and informed trading and I relate the results to the literature on institutional investor performance and stock selection. I suggest that future work investigate the role of discretionary opacity in facilitating informed trade as part of the cost benefit trade-off of the opacity decision maker (e.g., managers, analysts); test the relative effects of opacity on private information, liquidity, and price correction speed; and examine how institutional investors select which opaque firms to hold. (C) 2012 Elsevier B.V. All rights reserved.